Capital recovery factor
A capital recovery factor is the ratio of a constant annuity to the present value of receiving that annuity for a given length of time. Using an interest rate i, the capital recovery factor is:
![CRF = \frac {i(1+i)^n}{(1+i)^n-1}](/Images/godic/202501/03/1fdf87b9513ce165c7e08d31940c14d45635.png")
where ![n](/Images/godic/202501/03/7b8b965ad4bca0e41ab51de7b31363a15636.png")
is the number of annuities received.
This is related to the annuity formula, which gives the present value in terms of the annuity, the interest rate, and the number of annuities.