How to use this tool
Check the units, enter your values, and run the tool. Results follow the assumptions and method below.
Calculation method
Annual capital recovery charge
(cost*(1+rate/100)^years-salvage)*(rate/100)/((1+rate/100)^years-1)First-year interest on book value
cost*rate/100First-year net book reduction
(cost*(1+rate/100)^years-salvage)*(rate/100)/((1+rate/100)^years-1)-cost*rate/100