THE FEUTEX TOOLKIT

Capital Recovery Annual Cost

Annualize an asset outlay less discounted salvage and add annual operating cost.

Finance workspace● Runs in your browser

01 Your input

PurchasecurrencySalvagecurrencyYearsyearsRate%Operatingcurrency

02 Your result

View or copy raw result data

Result data

Formula

Annual capital = v.rate===0?(v.purchase-v.salvage)/v.years:(v.purchase-v.salvage/Math.pow(1+v.rate/100,v.years))*(v.rate/100)/(1-Math.pow(1+v.rate/100,-v.years)) ; Annual total = (v.rate===0?(v.purchase-v.salvage)/v.years:(v.purchase-v.salvage/Math.pow(1+v.rate/100,v.years))*(v.rate/100)/(1-Math.pow(1+v.rate/100,-v.years)))+v.operating

Sources and model references

https://openstax.org/books/principles-managerial-accounting/pages/11-4-use-discounted-cash-flow-models-to-make-capital-investment-decisions

Worked example

Inputs

Purchase: 100000 currency
Salvage: 20000 currency
Years: 5 years
Rate: 8 %
Operating: 10000 currency

Expected results

Annual capital: 21636.51637 currency/year
Annual total: 31636.51637 currency/year

Load the example in the workspace to reproduce these results. Display rounding does not change the underlying calculation.

How to use this tool

Enter your own assumptions using a consistent currency and period.
Review the scenario outputs and compare alternative inputs.
Check the stated model limits before using the result in an operating plan.

Try this example

{
  "purchase": 100000,
  "salvage": 20000,
  "years": 5,
  "rate": 8,
  "operating": 10000
}

Accuracy and scope

Deterministic planning scenario; inputs are assumptions, not forecasts. Excludes taxes, financing, legal requirements and costs not explicitly entered. Source explains the underlying planning framework; this specific scenario arithmetic is original.

Is my data uploaded?

This tool runs locally in your browser. Input and output are not sent to a processing server. Copy or download your result before leaving the page.