Equivalent annual value
Equivalent annual value calculator
Equivalent annual value converts a project NPV into a constant annual amount over the project life. This makes it easier to compare investments with different terms or uneven cash flow timing.
Open the EAV calculatorEquivalent annual value formula
npv studio calculates equivalent annual value by dividing NPV by the present value annuity factor for the selected discount rate and investment term.
Equivalent annual cost methodology
For cost-focused decisions, the same annualisation approach is often described as equivalent annual cost. Positive or negative signs depend on whether the scenario is framed as a benefit, cost, or net investment value.