Convert present value of project costs into a comparable level annual cost.
It makes the prices, cash flows, rates, time periods, weights, and model conventions explicit so you can inspect an entered scenario without hidden live-market assumptions.
Calculation structure
Follow the stated model and units
EAC = present value of costs ÷ [(1−(1+r)^−n)/r].
Visual explanation
See how the inputs become the result
Capital and cash flowstime and rate→entered modelScenario resultChanging one assumption changes the model—not the marketEAC = present value of costs ÷ [(1−(1+r)^−n)/r].
Read the estimate correctly
Use the result within its boundaries
Present costs 1,000 over five years at 10% produce annual cost about 263.80.
Costs are entered as a positive present-value magnitude and converted to a positive annual cost.
Quick guide
How to use this calculator
Enter the cash flows, values, rates, timing, or portfolio assumptions named in the fields.
Use one consistent period and currency convention throughout the scenario.
Read the calculator-specific model limits before interpreting the result.
Calculation method
Calculation method
EAC = present value of costs ÷ [(1−(1+r)^−n)/r].
Model, simulation, root, square-root, and compounding outputs are estimates and are visibly marked approximate.
Worked example
Worked example
Present costs 1,000 over five years at 10% produce annual cost about 263.80.
EAC = present value of costs ÷ [(1−(1+r)^−n)/r].
Supported inputs
Precision and limits
Visible input limits
Inputs support up to 12 decimal places and lists support at most 1,200 rows. Iteration and simulation bounds are displayed in their fields.
International scope
No exchange, tax system, reporting standard, currency, fund rule, trading calendar, or market convention is selected automatically.
Decision boundary
Outputs are entered scenarios, not valuations, forecasts, risk limits, executable trades, suitability decisions, or recommendations.
Calculator-specific assumptions
Costs are entered as a positive present-value magnitude and converted to a positive annual cost.
