Payment per period (A)
—
- A
- uniform amount per period
- P
- present value
- i
- interest rate per period
- n
- number of periods
Worked example · $5,000 today at 5% over 7 years is recovered as $864 each year.
Eq.06 · Uniform series
Capital Recovery Formula Calculator
Use this capital recovery formula calculator to apply the capital recovery method — spread a present value P into equal payments A that recover capital and interest each period.
A = P · i (1 + i)^n / [(1 + i)^n - 1]
How to use this calculator
- 1 Enter the present value as P (a loan, investment, or asset cost)
- 2 Enter the interest rate per period as i and the number of periods as n
- 3 Read A — the equal payment that recovers P plus interest each period
Examples
$5,000 recovered over 7 years
This is the default capital recovery example — a present value spread into equal yearly payments using the capital recovery method.
Given: P = $5,000, i = 5% per year, n = 7 years
Result: A = $864 per year
Loan repayment from borrowed principal
Capital recovery cost is exactly how loan payments are sized — the borrowed principal is repaid in equal installments that include interest.
Given: P = $20,000, i = 6% per year, n = 5 years
Result: A = $4,748 per year
Capital recovery with monthly payments
For monthly recovery cost, use a monthly rate and count periods in months — common for equipment financing.
Given: P = $15,000, i = 0.5% per month, n = 36 months (3 years)
Result: A = $456 per month
Frequently asked questions
What is capital recovery?
Capital recovery is splitting a present value P into equal payments A that repay principal plus interest over n periods — the capital recovery method.
What is the capital recovery formula?
A = P · i(1 + i)^n / [(1 + i)^n - 1]
How do I calculate capital recovery?
Enter present value P, interest rate i, and periods n. The calculator returns payment A per period.
What is an example of capital recovery?
$5,000 borrowed today at 5% over 7 years is repaid as $864 each year.
What is capital recovery cost per period?
It is the equal payment A from the formula — your yearly (or monthly) recovery cost, depending on how you set i and n.