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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.

Life-cycle 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

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:

Derived from resources provided by:

ASHRAE Pocket Guide for HVAC, 2013