Enter the initial cost ($), the maintenance cost ($), and the interest rate (%) into the Capitalized Cost Calculator. The calculator will evaluate and display the Capitalized Cost.

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## Capitalized Cost Formula

The following formula is used to calculate the Capitalized Cost.

CC = IC + MC*(1/(R/100))

- Where CC is the Capitalized Cost ($)
- IC is the initial cost ($)
- MC is the maintenance cost ($)
- R is the interest rate (%)

To calculate a capitalized cost, multiply the maintenance cost by 1 over the interest rate, then add the result to the initial cost.

## How to Calculate Capitalized Cost?

The following example problems outline how to calculate Capitalized Cost.

**Example Problem #1**

- First, determine the initial cost ($). The initial cost ($) is given as 200,000 .
- Next, determine the maintenance cost ($). The maintenance cost ($) is calculated as 40,000 .
- Next, determine the interest rate (%). The interest rate (%) is found to be 15.
- Finally, calculate the Capitalized Cost using the formula above:

CC = IC + MC*(1/(R/100))

Inserting the values from above yields:

CC = 200000 + 40000*(1/(15/100))** = **($) 466,666.66

**Example Problem #2**

The variables needed for this problem are provided below:

initial cost ($) = 4000

maintenance cost ($) = 2000

interest rate (%) = 10

Entering these values and solving gives:

CC = IC + MC*(1/(R/100)) =** **($) 24,000