Equivalent Annual Annuity Approach Calculator

The equivalent annual annuity approach (EAA) is one of the capital budgeting method to compare mutually exclusive projects with unequal lives. EAA calculates the constant annual cash flow generated by a project over its lifespan if it was an annuity. The one with the higher EAA should be selected. Use this equivalent annual annuity approach calculator to estimate the EAA to choose the successful project.

EAA Calculator


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Equivalent Annual Annuity Approach (EAA) is used in capital budgeting to find the net present value of an investment. The present value of the constant annual cash flow is equal to the project's net present value.