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Annualized Packaging Equipment Cost Calculator

Estimate annual equipment cost by straight-line spreading of an equipment investment over a positive user-entered service life, then adding annual maintenance. Formula: annualized capital = investment / service life; annual equipment cost = annualized capital + annual maintenance. This is not a tax depreciation schedule or discounted cash-flow calculation.

Example values are prefilled to demonstrate the calculation. Replace them with values for your product, package, equipment, and operating conditions.

Inputs

Investment, life, and maintenance

Range: at least 0 USD

Enter the one-time equipment investment in dollars; zero is valid when analyzing maintenance-only annual cost.

Range: at least 0 years

Enter expected planning service life in years. It must be greater than zero; no tax or accounting life is assumed.

Range: at least 0 USD/year

Enter expected maintenance and service cost per year in dollars for the same equipment scope.

Result

Valid
Annual equipment cost estimate (USD/year)
$85,000.00/year
Annualized capital cost (USD/year)
$60,000.00/year

Calculation

Annualized capital cost (USD/year)
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Annual equipment cost estimate (USD/year)
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