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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
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Derived from resources provided by:
ASHRAE Pocket Guide for HVAC, 2013
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