{"id":9381,"date":"2020-12-22T18:37:13","date_gmt":"2020-12-22T18:37:13","guid":{"rendered":"https:\/\/insulation.org\/?page_id=9381"},"modified":"2021-07-27T14:40:16","modified_gmt":"2021-07-27T14:40:16","slug":"mechanical-insulation-financial-calculator","status":"publish","type":"page","link":"https:\/\/insulation.org\/training-tools\/designguide\/simple-calculators\/mechanical-insulation-financial-calculator\/","title":{"rendered":"Mechanical Insulation Financial Calculator"},"content":{"rendered":"
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This calculator determines the simple payback period, the annualized rate of return, and the NPV from an insulation project.<\/p>\n

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Instructions<\/h4>\n
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  • Line 1. Enter the cost of installing or replacing insulation<\/li>\n
  • Line 2. Enter the estimated savings during the first year<\/li>\n
  • Line 3. Enter the projected annual energy cost escalation rate<\/li>\n
  • Line 4. Enter the estimated useful life of the insulation system<\/li>\n
  • Line 5. Enter the discount rate for Net Present Value calculation<\/li>\n<\/ul>\n

    Note<\/strong>: Calculator ignores any savings after 20 yrs<\/p>\n

    Assumptions<\/h4>\n
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    • Simple payback period is calculated as the initial cost divided by the first year savings<\/li>\n
    • Assumes investment and annual savings occur at end of year<\/li>\n<\/ul>\n

      Note<\/strong>: Calculator may be used for a single item or an entire project<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\t\t