Option Value Calculator
Model a domain investment using its purchase price, renewal costs, sale probability, exit value, and cost of capital. The calculation is free, no signup required. It costs 1 credit to verify the assumptions with Speeder, and verification requires an account.
What could this domain return?
Use realistic numbers. Small changes in sale probability have a large effect.
Option value estimate
Expected value after renewal costs and the time value of money.
Expected revenue minus renewals and initial purchase price, before discounting.
Discounted net profit divided by purchase price plus renewals.
- Expected sale revenue
- $1,576.16
- Expected liquidation revenue
- $240.15
- Total expected revenue
- $1,816.31
- Present option value
- $1,636.31
- Expected investment return
- 404.53%
- Discounted net profit
- $1,116.11
A probability-weighted holding decision
The model combines two possible outcomes: an end-user sale during the holding period, or a wholesale liquidation if no sale occurs. It then subtracts renewal costs and discounts the result for time and risk.
Cumulative probability = 1 - (1 - annual probability)years. The annual chance is assumed constant and independent each year.
Each outcome value is multiplied by its probability. If no end-user sale happens, the model assumes a wholesale exit at the end.
Renewal costs are subtracted as one total, matching the reference sheet. The remaining option value is discounted by the cost of capital over the holding period.