Capital recovery factor

Compute annual payment and recovery table from loan principal, and show yearly coefficients.

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Calculation specification

Reviewed on:

Formula basis

The capital recovery factor is r/{1−(1+r)^−n}, or 1/n when r=0. Annual payment equals principal times the factor.

Calculation method

Calculates the equal year-end amount that recovers a present principal over a selected number of years, with a table from year 1 onward.

Exclusions and checks required

  • Cash flows occur at each year-end and the annual rate is constant.
  • Tax, fees, interim cash flows, and inflation are excluded; selected rounding applies to factors and yen amounts.

Example input:：Recovering JPY 30 million over 20 years at 3%

principalMan
3000
annualRate
3
years
20
digits
6
rounding
halfUp

This factor assumes evenly spaced annual year-end cash flows.

FAQ

Who is this calculator for? Capital recovery factor

Compute annual payment and recovery table from loan principal, and show yearly coefficients.

What values should I enter?

Applies to: Financial factors / Capital recovery factor = r ÷ {1 − (1+r)^−n}

How should I interpret this estimate?

Calculates the equal year-end amount that recovers a present principal over a selected number of years, with a table from year 1 onward.

How to use

  1. Enter your input values and press Calculate.
  2. Review the result and compare it with expected context.
  3. The capital recovery factor is r/{1−(1+r)^−n}, or 1/n when r=0. Annual payment equals principal times the factor.