Life Cycle Calculator

1. Adjust the values to compute the net present value of a project over its full lifetime.

2. Save or share your custom scenario:

Examples: Capital project | Cleanup costs | Grant funding | Outsourcing | Durable asset


Lighter bars in the foreground represent present values. Darker bars in the background represent future values.

The dashed purple line shows the running sum of the present values of the cash flows only. The solid purple line additionally assumes that the purchased capital asset can be resold at any time, and includes the time-discounted, linearly-depreciated asset value. (Both methods produce the same net present value when the entire scenario's cash flows are included.)

Upfront costs/revenues are assumed to occur immediately (they are not time-discounted). End of life costs/revenues are assumed to occur immediately at the asset's end of life (they are time-discounted by the total life span). All time periods in between assume that cash flows at the end of the period.

The calculator uses full numerical precision internally, but it rounds some displayed values for clarity and to reflect the many uncertainties in predicting the future.

Interest rates shown are always annual rates.

Math Easel > Visual Calculators > Life Cycle Calculator