# Simple math to calcuate economic value of a model

**URL:** <https://forum.numer.ai/t/simple-math-to-calcuate-economic-value-of-a-model/3972>\
**Category:** Tournament\
**Created:** [August 20, 2021, 7:10am UTC](https://forum.numer.ai/t/simple-math-to-calcuate-economic-value-of-a-model/3972 "2021-08-20T07:10:56Z")\
**Posts on this page:** 10\
**Page:** 1

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**Author:** ![nyuton](https://yyz1.discourse-cdn.com/flex009/user_avatar/forum.numer.ai/nyuton/32/687_2.png) [@nyuton](https://forum.numer.ai/u/nyuton)\
**Post date:** [August 20, 2021, 7:10am UTC](https://forum.numer.ai/t/simple-math-to-calcuate-economic-value-of-a-model/3972/1 "2021-08-20T07:10:56Z")

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Hi,

I started selling my models at [NumerBay.ai](https://numerbay.ai/c/numerai-predictions) and calculated what they are worth compared to the example predictions. The example model is pretty solid and has been ranked high, so we definitely have to calculate with that.

I created a simple spreadsheet to calcuate a model value, when we take example prediction as baseline:

> **[Numerai model value calculation](https://docs.google.com/spreadsheets/d/1qkX78wylhOhHyyx4bxSfxiP5LOo4QxSxLGRLC-HTNXw/edit?usp=sharing)**
>
> This Sheet is private

You can download and modify this sheet as well to do the calcuation for your models.  
Here I copy a screenshot for simplicity as well. I’m always supprised to see, how much we earn with Numerai 😃

 ![image](https://canada1.discourse-cdn.com/flex009/uploads/numerai/original/2X/b/bc24c21fd69fcfe2baac99a6703c98b6421af98c.png)

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**Author:** ![autratec](https://avatars.discourse-cdn.com/v4/letter/a/6bbea6/32.png) [@autratec](https://forum.numer.ai/u/autratec)\
**Post date:** [August 20, 2021, 10:38am UTC](https://forum.numer.ai/t/simple-math-to-calcuate-economic-value-of-a-model/3972/2 "2021-08-20T10:38:22Z")

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Should we just stake on example model and get long term return ?

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<div class="post-metadata">

**Author:** ![nyuton](https://yyz1.discourse-cdn.com/flex009/user_avatar/forum.numer.ai/nyuton/32/687_2.png) [@nyuton](https://forum.numer.ai/u/nyuton)\
**Post date:** [August 20, 2021, 11:29am UTC](https://forum.numer.ai/t/simple-math-to-calcuate-economic-value-of-a-model/3972/3 "2021-08-20T11:29:34Z")

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What I tried to show here, how much more you earn, if you stake on a better model like “nyuton\_test9”

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**Author:** ![autratec](https://avatars.discourse-cdn.com/v4/letter/a/6bbea6/32.png) [@autratec](https://forum.numer.ai/u/autratec)\
**Post date:** [August 20, 2021, 12:10pm UTC](https://forum.numer.ai/t/simple-math-to-calcuate-economic-value-of-a-model/3972/4 "2021-08-20T12:10:03Z")

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Considering no matter how hard I try, I can not compete with example, the easy way for me is just invest on example 🙂

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**Author:** ![qeintelligence](https://yyz1.discourse-cdn.com/flex009/user_avatar/forum.numer.ai/qeintelligence/32/2531_2.png) [@qeintelligence](https://forum.numer.ai/u/qeintelligence)\
**Post date:** [August 20, 2021, 2:30pm UTC](https://forum.numer.ai/t/simple-math-to-calcuate-economic-value-of-a-model/3972/5 "2021-08-20T14:30:44Z")

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@nyuton doesn’t the spreadsheet also need to include the payout factor? Currently i think you would get about half of your calculated gains with the payout factor at ~0.5.

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**Author:** ![nyuton](https://yyz1.discourse-cdn.com/flex009/user_avatar/forum.numer.ai/nyuton/32/687_2.png) [@nyuton](https://forum.numer.ai/u/nyuton)\
**Post date:** [August 20, 2021, 3:52pm UTC](https://forum.numer.ai/t/simple-math-to-calcuate-economic-value-of-a-model/3972/6 "2021-08-20T15:52:29Z")

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Thanks for pointing it out, you are right about it!  
I updated the spreadsheet!

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**Author:** ![autratec](https://avatars.discourse-cdn.com/v4/letter/a/6bbea6/32.png) [@autratec](https://forum.numer.ai/u/autratec)\
**Post date:** [August 22, 2021, 1:32pm UTC](https://forum.numer.ai/t/simple-math-to-calcuate-economic-value-of-a-model/3972/7 "2021-08-22T13:32:37Z")

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If investor provide the account name and API access, can you load the prediction for the investor directly ?

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**Author:** ![nyuton](https://yyz1.discourse-cdn.com/flex009/user_avatar/forum.numer.ai/nyuton/32/687_2.png) [@nyuton](https://forum.numer.ai/u/nyuton)\
**Post date:** [August 22, 2021, 2:33pm UTC](https://forum.numer.ai/t/simple-math-to-calcuate-economic-value-of-a-model/3972/8 "2021-08-22T14:33:47Z")

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Hi Autratec,  
sure, you can get the model here: [https://numerbay.ai/p/20/numerai-predictions-nyuton](https://numerbay.ai/p/20/numerai-predictions-nyuton)  
Send me the API keys and I’ll upload it from next week on.  
This week is manual only…

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**Author:** ![autratec](https://avatars.discourse-cdn.com/v4/letter/a/6bbea6/32.png) [@autratec](https://forum.numer.ai/u/autratec)\
**Post date:** [August 23, 2021, 1:35am UTC](https://forum.numer.ai/t/simple-math-to-calcuate-economic-value-of-a-model/3972/9 "2021-08-23T01:35:37Z")

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thanks for the response and 1$ offer. i am ok to manually load it at current stage. but it will be good to use API direct push to investor’s account as long term business model.

btw, looking at your diagnostic result, i can see the huge gap need to catch up.

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<div class="post-metadata">

**Author:** ![nyuton](https://yyz1.discourse-cdn.com/flex009/user_avatar/forum.numer.ai/nyuton/32/687_2.png) [@nyuton](https://forum.numer.ai/u/nyuton)\
**Post date:** [August 23, 2021, 6:34am UTC](https://forum.numer.ai/t/simple-math-to-calcuate-economic-value-of-a-model/3972/10 "2021-08-23T06:34:43Z")

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I include validation into the training set. Aim high, but not that high 😃
