What does this calculator mean by opportunity cost?

It means the retirement-path terminal value minus the net business-path terminal value under the exact assumptions entered. The result can be positive, negative, or zero.

Does the business path estimate what a ROBS company will be worth?

No. The business value path is entirely user-entered and hypothetical. Annual return mode compounds the entered business value change each year; terminal multiple mode applies the entered multiple in the final year.

Are distributions, fees, and contributions counted twice?

No. The model separates retirement contributions and employer match, business value, specified business distributions, and ROBS fees. Distributions are counted once as cumulative cash flows and fees reduce only the net business-path value.

Does this compare taxes, liquidity, or risk?

No. It is a nominal scenario ledger, not a tax model, liquidity estimate, recoverability claim, business valuation, or risk-equivalence statement.

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Retirement Opportunity-Cost Calculator

Compare two user-entered scenarios over the same horizon: leaving an amount in a hypothetical retirement-account path versus committing that amount to ROBS employer stock. The calculator shows the arithmetic difference without forecasting a business, ranking either path, or promising an investment return.

By Dennis Shirshikov · Last updated 2026-08-12

Enter the shared scenario assumptions

This browser-only worksheet uses native FormData on explicit submit. It does not store inputs, push them into the URL, or send a lead form. No query string stores inputs. No email, phone, or account is requested.

Amount moved or committed to ROBS stock

Bounds: 0 to 5000000, step 1000.

Shared horizon

Bounds: 1 to 50, step 1.

Hypothetical annual retirement return

Bounds: -100 to 30, step 0.25.

Business value convention

Annual mode compounds the entered rate each year. Terminal mode applies the entered multiple only in the final year.

Hypothetical annual business value change

Bounds: -100 to 100, step 0.25.

Terminal business value multiple

Bounds: 0 to 20, step 0.1.

Annual retirement contribution otherwise made

Bounds: 0 to 100000, step 100.

Employer match on that contribution

Bounds: 0 to 100, step 0.25.

Include contributions and match in retirement pathUse only if those contributions would continue in the retirement-account scenario and would be foregone in the ROBS business-stock scenario.

Annual business cash distribution to plan

Bounds: 0 to 1000000, step 100.

Distribution start year

Bounds: 1 to 50, step 1.

Distribution end year

Bounds: 1 to 50, step 1.

ROBS setup cost

Bounds: 0 to 100000, step 100.

Annual administration cost

Bounds: 0 to 100000, step 100.

Annual valuation cost

Bounds: 0 to 100000, step 100.

Exit or termination cost in final year

Bounds: 0 to 1000000, step 100.

Retirement path

$357,535

Net business path

$151,849

Difference

$205,686

Neutral direction label

The retirement-path terminal value is higher under the entered assumptions. A negative difference is allowed; it is not a recommendation or prediction.

Final business value: $182,849
Specified distributions: $0
Modeled fees: $31,000
Retirement return: 5%

Year-by-year ledger

Year	Retirement end	Business end	Cash flows	Fees	Difference
1	$166,500	$153,000	$0	$7,300	$20,800
2	$183,825	$156,060	$0	$2,300	$37,365
3	$202,016	$159,181	$0	$2,300	$54,735
4	$221,117	$162,365	$0	$2,300	$72,952
5	$241,173	$165,612	$0	$2,300	$92,061
6	$262,232	$168,924	$0	$2,300	$112,107
7	$284,343	$172,303	$0	$2,300	$133,140
8	$307,560	$175,749	$0	$2,300	$155,211
9	$331,938	$179,264	$0	$2,300	$178,374
10	$357,535	$182,849	$0	$5,300	$205,686

Year 1

Retirement end: $166,500
Business end: $153,000
Cash flows: $0
Fees: $7,300
Difference: $20,800

Year 2

Retirement end: $183,825
Business end: $156,060
Cash flows: $0
Fees: $2,300
Difference: $37,365

Year 3

Retirement end: $202,016
Business end: $159,181
Cash flows: $0
Fees: $2,300
Difference: $54,735

Year 4

Retirement end: $221,117
Business end: $162,365
Cash flows: $0
Fees: $2,300
Difference: $72,952

Year 5

Retirement end: $241,173
Business end: $165,612
Cash flows: $0
Fees: $2,300
Difference: $92,061

Year 6

Retirement end: $262,232
Business end: $168,924
Cash flows: $0
Fees: $2,300
Difference: $112,107

Year 7

Retirement end: $284,343
Business end: $172,303
Cash flows: $0
Fees: $2,300
Difference: $133,140

Year 8

Retirement end: $307,560
Business end: $175,749
Cash flows: $0
Fees: $2,300
Difference: $155,211

Year 9

Retirement end: $331,938
Business end: $179,264
Cash flows: $0
Fees: $2,300
Difference: $178,374

Year 10

Retirement end: $357,535
Business end: $182,849
Cash flows: $0
Fees: $5,300
Difference: $205,686

Formulas used

Annual end-of-year model: retirement start balance grows first, then end-of-year contribution and employer match are added.
Retirement path year end = retirement start × (1 + retirement return) + contribution + employer match.
Business path value changes annually: business end = business start × (1 + business return) − specified distribution.
Business distributions are counted once as cumulative plan cash flows only in the specified years.
Net business-path terminal value = final business value + cumulative specified distributions − setup, annual administration, annual valuation, and exit costs.
Opportunity cost = retirement-path terminal value − net business-path terminal value; negative means the business scenario is higher under the entered assumptions.
Inflation is not included; all displayed values are nominal dollars over 10 years.

How the model works

The retirement path starts with the amount committed and applies the user-entered annual retirement return. Because SEC Investor.gov frames compound-interest examples around an initial investment, contributions, time, estimated interest rate, and compounding frequency, this calculator uses an annual end-of-year convention instead of implying a market forecast [1]. DOL materials also emphasize that retirement planning depends on understanding workplace retirement benefits and giving savings time to grow [2].

The business path starts with the same committed amount because IRS ROBS materials describe a rollover into a plan that purchases stock of a new C corporation [3]. You then choose either an annual business value change or a final terminal multiple. Both are hypothetical inputs. They do not establish fair market value, liquidity, tax treatment, recoverability, or whether the company can redeem plan-owned stock.

Retirement end value = starting retirement balance × (1 + retirement return) + any included end-of-year contribution and employer match.
Annual business mode = starting business value × (1 + entered business value change) minus specified distribution.
Terminal multiple mode = committed amount × entered multiple in the final year, with business value held constant before then.
Net business path = final business value + specified distributions − setup, annual administration, annual valuation, and exit costs.
Opportunity cost = retirement-path terminal value − net business-path terminal value.

Assumptions and exclusions

All values are nominal dollars. Inflation is excluded so real and nominal values are not mixed.
All defaults are examples or zero-dollar placeholders, not recommendations.
Business distributions are included only when you specify the annual amount and start/end years.
The model does not count principal twice; principal becomes either the retirement starting balance or the initial business stock value.
The model does not compare risk. SEC asset-allocation materials distinguish investment categories; a privately held employer-stock position is not the same as a diversified retirement allocation [4].

Example interpretation

If a $150,000 retirement path grows to $244,000 while the entered business path nets $180,000 after fees and specified distributions, the opportunity cost is $64,000. If the entered business path nets $260,000, the difference is negative $16,000 and the page labels the business scenario higher. Neither label says which choice is better because taxes, liquidity, concentration, business failure, plan compliance, and household risk capacity are outside the arithmetic.

Privacy and trust

The calculator runs in the browser after you press Calculate. It uses native form submission handling, not a lead form. It asks for no email, phone number, account login, provider selection, Social Security number, plan account number, or business-identifying data.

Sources

SEC Investor.gov compound interest calculatorSupports use of initial investment, contribution amount, length of time, estimated annual interest rate, and compounding frequency as user-entered retirement-growth variables. Checked Aug. 12, 2026.
DOL Preparing for RetirementSupports the educational importance of retirement planning, employer retirement plans, understanding plan benefits, reviewing plans, and leaving retirement savings invested longer to allow more time to grow. Checked Aug. 12, 2026.
IRS ROBS compliance projectSupports the ROBS mechanics used here: retirement funds roll into a plan, the plan purchases C corporation stock, and the arrangement raises business-failure, valuation, recurring fee, filing, and compliance concerns. Page last reviewed Nov. 16, 2025; checked Aug. 12, 2026.
SEC Investor.gov asset allocationSupports the distinction between diversified investment categories and concentrated private-business exposure; the calculator does not treat the two paths as equal risk. Checked Aug. 12, 2026.

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