Tag: back-of-the-envelope estimation

  • What Is Back-of-the-Envelope Estimation?

    Back-of-the-envelope estimation is a rough calculation used to estimate the feasibility, cost, or scale of a project or problem without delving into highly detailed analysis or precise data. It’s a quick and practical way to get an approximate answer based on reasonable assumptions.

    This technique is often used in system design, engineering, product planning, and brainstorming sessions to:

    • Determine whether an idea is worth pursuing.

    • Spot potential bottlenecks or challenges.

    • Validate the feasibility of solutions or architectures.

    Steps for a Back-of-the-Envelope Estimation:

    1. Define the Problem Clearly:

    • Understand what you’re estimating (e.g., storage requirements, bandwidth, number of servers).

    • Break the problem into smaller, manageable components.

    2. Make Assumptions:

    • Use approximate values based on industry standards or prior knowledge.

    • Err on the side of simplicity and round numbers for quick calculations.

    3. Perform Calculations:

    • Use basic arithmetic to combine assumptions and get the result.

    4. Validate Assumptions:

    • Ensure assumptions are reasonable.

    • Adjust estimates if the results seem unrealistic.

    5. State Assumptions Explicitly:

    • Communicate the assumptions clearly so others can understand and refine your calculations.

    Example 1: Estimating Storage for a Chat Application

    Problem: Estimate the annual storage requirements for a messaging app with 1 million daily active users (DAUs).

    Assumptions:

    1. Each user sends 50 messages per day.

    2. Average message size is 200 bytes.

    3. Messages are stored for 1 year.

    Calculation:

    1. Total messages per day = 1,000,000 users × 50 messages = 50,000,000 messages/day.

    2. Total storage per day = 50,000,000 messages × 200 bytes = 10 GB/day.

    3. Annual storage = 10 GB/day × 365 days = 3.65 TB/year.

    Result: You would need approximately 3.65 TB of storage per year.

    Example 2: Bandwidth for a Video Streaming Service

    Problem: Estimate the bandwidth required to stream 1080p videos to 10,000 concurrent users.

    Assumptions:

    1. 1080p video uses 5 Mbps.

    2. All users are watching simultaneously.

    Calculation:

    1. Bandwidth per user = 5 Mbps.

    2. Total bandwidth = 5 Mbps × 10,000 users = 50,000 Mbps = 50 Gbps.

    Result: You need a network capable of handling 50 Gbps of traffic.

    Common Use Cases:

    1. System Design:

    • Estimating server requirements (CPU, memory, disk).

    • Predicting data throughput or storage needs.

    2. Capacity Planning:

    • Assessing whether existing infrastructure can handle growth.

    3. Financial Projections:

    • Quick revenue or cost estimations for business models.

    4. Engineering Problems:

    • Estimating power consumption, materials, or load capacities.

    Tips for Effective Back-of-the-Envelope Estimations:

    1. Use Reasonable Numbers:

    • Simplify complex calculations by rounding numbers (e.g., use 1M instead of 1,048,576).

    2. Focus on Key Factors:

    • Ignore minor details or edge cases unless they significantly impact the result.

    3. Cross-Check Results:

    • Compare your estimate to known benchmarks or real-world data.

    4. Iterate:

    • Refine your assumptions and calculations if more precise data becomes available.

    Back-of-the-envelope calculations are invaluable in system design, initial project discussions, and rapid brainstorming.