Enter the average cost per day into the calculator to determine the cost per year of a service or item.

Cost Per Year Formula

The following equation is used to calculate the Cost Per Year.

CPY = ADC * 365

  • Where CPY is the cost per year ($/year)
  • ADC is the average daily cost ($)

To calculate the cost per year of a service or item, multiply the average daily cost by 365.

What is Cost Per Year?

Definition:

A cost per year is defined as the equivalent annual cost of a service or asset based on it’s average daily cost.

How to Calculate Cost Per Year?

Example Problem:

The following example outlines the steps and information needed to calculate Cost Per Year.

First, determine the average daily cost. In this example, we are looking at a service for streaming. The average daily cost of the streaming is found to be $5.00.

Next, determine the yearly cost using the formula above:

CPY = ADC * 365

CPY = 5*365

CPY = $1,825.00 / year