Related Resources: calculators
Capital Recovery Factors Formula and Calculator
Capital Recovery Factors Formula and Calculator
The future equal payments to repay a present value of money is determined by the capital recovery factor, which is the reciprocal of the present worth factor for a series of equal payments.
Lifecycle cost is calculated by determining the present worth of the cost of an investment. For system alternatives, it is
Where:
where
i = interest rate / 100
n = lifetime in years
Table 1.0: Annual Capital Recovery Factors
Years

Rate of Return or Interest Rate, % per Year


3.5 
4.5 
6 
8 
10 

2 
0.52640 
0.53400 
0.54544 
0.56077 
0.57619 
4 
0.27225 
0.27874 
0.28859 
0.30192 
0.31547 
6 
0.18767 
0.19388 
0.20336 
0.21632 
0.22961 
8 
0.14548 
0.15161 
0.16104 
0.17401 
0.18744 
10 
0.12024 
0.12638 
0.13587 
0.14903 
0.16275 
12 
0.10348 
0.10967 
0.11928 
0.13270 
0.14676 
14 
0.09157 
0.09782 
0.10758 
0.12130 
0.13575 
16 
0.08268 
0.08902 
0.09895 
0.11298 
0.12782 
18 
0.07582 
0.08224 
0.09236 
0.10670 
0.12193 
Figure 1.0 Capital Recovery Factor Versus Time
Related:
 Life cycle costs formula and calculator
 Design to Cost and Life Cycle Cost
 Feature Based Cost Estimation Extruded Parts
 Cost of Welding Equations and Calculators
 Cost of Welding Review Equation and Calculator
 Rough Estimating Cost Machined Parts Equations and Calculator
 Cost of Ownership vs Buy Calculator
 Design to Cost Concept and Application
 Machining Part Cost Estimator Excel Spreadsheet Calculator
 Cost of Heating Fuel Calculator
 Injection Molding Plastic Cost Estimator Excel Spreadsheet Calculator
Derived from resources provided by:
ASHRAE Pocket Guide for HVAC, 2013