Words of the Week – back of the envelope calculation

Back of the Envelope (image: KellyLWatson)

A back of the envelope calculation is a rough estimate that is completed quickly to make a point. While not rigorous, back of the envelope calculations are logic based and can typically be used for initially presenting potential opportunities. For example, you might hear a budding entrepreneur say to a potential investor, “I did a back of the envelope calculation and believe this could be a billion dollar market.” The term originated from the practice of grabbing the nearest available piece of paper to complete a calculation.

Author: Grayson Leverenz

Grayson Leverenz founded MBA in the USA® to help international students build networks, find jobs, and have fun in the USA. Hundreds of global professionals have benefited from Grayson’s intercultural workshops, and she has worked with people from Brazil, China, India, South Africa, South Korea, the UK, and the USA to build effective virtual teams and craft brilliant careers.

Share This Post On

Submit a Comment

Your email address will not be published. Required fields are marked *