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Annual worth comparison (AW) calculator

For the case equal annual cash-flow model, subtract annualized capital to compare the required return.

AW=Snet−Icapital×CRF\mathrm{AW} = S_{\text{net}} - I_{\text{capital}} \times \mathrm{CRF}

Calculator

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

$/yr
$
1/yr
$/yr

Worked example

Given

  • SnetS_{\text{net}} = 94,000 $/yr
  • IcapitalI_{\text{capital}} = 470,000 $
  • CRF\mathrm{CRF} = 0.15 1/yr
AW=94,000−470,000×0.15=23,500\mathrm{AW} = 94{,}000 - 470{,}000 \times 0.15 = 23{,}500

Symbols and units

SymbolMeaningUnit
AW\mathrm{AW}annual worth$/yr
SnetS_{\text{net}}net annual operating savings$/yr
IcapitalI_{\text{capital}}initial capital$
CRF\mathrm{CRF}capital-recovery factor A/P1/yr

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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.