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Equivalent Annual Cost (EAC) Calculator

EAC = NPV · r / (1 − (1+r)⁻ᵗ).

Compute the equivalent annual cost (or annuity) of a project — the constant per-year cash flow that has the same present value as the project, used to compare projects of unequal length: EAC = NPV · r / (1 − (1+r)⁻ᵗ).

Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

Inputs

$
%
yr

Results

Enter values and click Calculate to see results.
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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

EAC = NPV · r / (1 − (1 + r)⁻ᵗ)

In depth

Compute the equivalent annual cost (or annuity) of a project — the constant per-year cash flow that has the same present value as the project, used to compare projects of unequal length: EAC = NPV · r / (1 − (1+r)⁻ᵗ).