business calculator
Capital Expenditure (CapEx) ROI Calculator
Evaluate CapEx projects with ROI, simple payback period, and Net Present Value (NPV) metrics.
Formula Verified by Dr. Marcus Sterling, PhD
Inputs
Results
Total Lifetime Net Inflow$25,000
Simple Payback Period
3.33 Years
Net Present Value (NPV)
$9,891
Capital ROI50.0%
Formula
Capital Expenditure (CapEx) Formulas
Net Inflow = (Annual Inflow * Life) - Cost. ROI = (Net Inflow / Cost) * 100. Payback = Cost / Annual Inflow. NPV = Sum[Flow_t / (1+r)^t] - Cost.Estimates payback periods, total capital returns, and Net Present Value (discounted for the cost of capital).
Step by step
How the calculation works
- 1Enter the initial capital acquisition or construction cost.
- 2Provide the average annual cash inflow generated by the project/asset.
- 3Specify the useful life (in years) before depreciation or replacement.
- 4Input your discount rate or Cost of Capital to compute Net Present Value.
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