ClueLuma

Motor project ROR calculator

The rate of return makes present savings equal installed investment.

ΔCinitial=Sannual×[1−(1+i)−n]i{\Delta C_{\text{initial}}} = \frac{S_{\text{annual}} \times \left[1 - \left(1 + i\right)^{-n}\right]}{i}

Calculator

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$/yr
1/yr
yr
$

Worked example

Given

  • SannualS_{\text{annual}} = 3,400 $/yr
  • ii = 0.07 1/yr
  • nn = 10 yr
ΔCinitial=3400×[1−(1+0.07)−10]0.07≈23,880{\Delta C_{\text{initial}}} = \frac{3400 \times \left[1 - \left(1 + 0.07\right)^{-10}\right]}{0.07} \approx 23{,}880

Symbols and units

SymbolMeaningUnit
ΔCinitial{\Delta C_{\text{initial}}}incremental initial investment$
SannualS_{\text{annual}}annual net savings$/yr
iirate of return1/yr
nnproject lifeyr

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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.