Enter the interest rate and the number of annuities into the Calculator. The calculator will evaluate the Capital Charge Factor. 

Capital Charge Factor Formula

CRF = [i(1+i)^n]/[(1+i)^n-1]

Variables:

  • CRF is the Capital Charge Factor ()
  • i is the interest rate
  • n is the number of annuities

How to Calculate Capital Charge Factor?

The following steps outline how to calculate the Capital Charge Factor.

  1. First, determine the interest rate. 
  2. Next, determine the number of annuities. 
  3. Next, gather the formula from above = CRF = [i(1+i)^n]/[(1+i)^n-1].
  4. Finally, calculate the Capital Charge Factor.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

interest rate = 0.23

number of annuities = 600