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Capital Recovery Factor

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Last modified by
on
Jan 4, 2024, 4:58:09 PM
Created by
on
Nov 25, 2014, 7:40:03 AM
`"CR Factor" = ( i *(1+i)^n)/((1+ i )^ n -1) `
`(n) "Number of Periods"`
`(i%) "Interest Rate"`
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The Capital Recovery Factor calculator computes the Capital Recovery (CR) factor based on the interest rate per period (i) and the number of periods.

INSTRUCTION: Enter the following:

  • (i) Interest Rate per period.
  • (n)  Number of Periods.

Capital Recovery Factor (CRF): The calculator returns the factor rounded to the nearest 1000th.

The Math / Science

The Capital Recovery Factor is a Discrete Compounding Discount Factor often symbolized as (A/P, i%, n).  

The formula for the Capital Recovery Factor is:

          `CRF = (i (1+i)^n)/( (1+ i)^1 - 1)`

where:

  • CRF is the Capital Recovery Factor
  • i% - interest rate entered as a percentage; i.e., enter 4.7 for a 4.7% interest rate
  • n - number of cash flow periods

NOTES

A CR factor is the ratio of a constant annuity to the present value of receiving that annuity for a given length of time1.


Financial Calculators

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This equation, Capital Recovery Factor, is used in 2 pages
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