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"pencil out" is correct and usable in written English.
It is usually used as a phrasal verb meaning to calculate, often in order to determine the feasibility or cost of something. For example: "Before deciding to go ahead with the project, we need to pencil out the costs."
Dictionary
pencil out
verb
Of an investment, to make sense financially or to be expected to generate the desired returns
Exact(60)
Now the numbers don't pencil out, and stockholders are fuming.
"Affordable by itself simply doesn't pencil out," he said.
"The utilization of that space for a dying newspaper, in their eyes, just doesn't pencil out".
"If you can't net meter in the summer months, it definitely doesn't pencil out," he said.
"I know he's a brilliant guy, but it just doesn't pencil out".
They're always showing you multivariate regressions or explaining why some promising idea "didn't pencil out".
"Projects that looked great 18 months ago may not pencil out today".
They may not pencil out in terms of revenue per available room, but they may not be expected to".
TechCrunch says that News Corporation proposed several options to Yahoo last week "but none of them pencil out".
The question that once again arises, as it did in the mid-1980s, "does high input wheat pencil out, if wheat prices remain at $4.00/bushel or lower"?
Gone are the days when investments in clean energy may feel good, but neither "pencil out" or provide better services than the dirty energy systems they replace.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com