Finance · Investments & Markets

Equivalent Annual Cost Calculator

Convert present value of project costs into a comparable level annual cost.

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Quick guide

How to use this calculator

  1. Enter the cash flows, values, rates, timing, or portfolio assumptions named in the fields.
  2. Use one consistent period and currency convention throughout the scenario.
  3. 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.