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Annual worth after capital recovery (AW) calculator

Net annual worth is calculated as A − P × i/(1-(1+i)^(-n)). Use the stated system boundary and matching input units.

AW=A−P×i1−(1+i)−n\mathrm{AW} = A - \frac{P \times i}{1 - \left(1 + i\right)^{-n}}

Calculator

Enter the values you know and leave one box empty. Calculate finds the empty one, the result or any input.

$/year
$
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year
$/year

Worked example

Given

  • AA = 25,000 $/year
  • PP = 100,000 $
  • ii = 0.08 —
  • nn = 10 year
AW=25,000−100,000×0.081−(1+0.08)−10≈10,097\mathrm{AW} = 25{,}000 - \frac{100{,}000 \times 0.08}{1 - \left(1 + 0.08\right)^{-10}} \approx 10{,}097

Symbols and units

SymbolMeaningUnit
AW\mathrm{AW}net annual worth$/year
AAannual net operating benefit$/year
PPinitial investment$
iirequired return—
nnlifeyear

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Results are estimates for study and screening. Check the inputs, units and assumptions before you use them for design, billing or contract decisions.