Estimate the annual energy output, yearly profit, payback period, and lifetime net profit of a wind turbine from its capacity, installed cost, capacity factor, and your electricity rate.
Payback = installed cost ÷ (annual revenue − annual O&M). Lifetime figure assumes a 25-year turbine service life.
Results
Calculated
Annual energy production
—
kWh/yr (AEP)
Annual net profit
—
Revenue minus O&M, per year
Payback period
—
Years to recover installed cost
25-yr net profit
—
Lifetime profit minus installed cost
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How to use this calculator
Enter your turbine's rated capacity, the total installed cost, an expected capacity factor, your electricity rate (or the retail rate you're offsetting), and an annual operations-and-maintenance (O&M) cost. Click Calculate to see the annual energy output, annual net profit, payback period, and estimated net profit over a typical 25-year turbine service life. Click Reset to restore the example values.
The formula
This calculator uses the standard capacity-factor method for estimating wind energy output and profit:
Annual Energy Production (AEP): rated capacity (kW) × capacity factor × 8,760 hours per year, in kWh.
Annual revenue: AEP × electricity rate ($/kWh).
Annual net profit: annual revenue minus annual O&M cost.
Payback period: installed cost ÷ annual net profit, in years.
Lifetime net profit: (annual net profit × 25 years) minus installed cost, using a typical 20–25 year turbine design life.
Understanding capacity factor
Capacity factor is the share of a turbine's rated (nameplate) output it actually delivers on average once variable wind speed and downtime are accounted for — a turbine never runs at 100% output around the clock. Small residential or community-scale turbines typically land in the 10–30% range, while larger, taller, well-sited utility-scale turbines can reach 35–45%. Site wind resource and turbine hub height are the biggest drivers, so use a site-specific wind assessment or manufacturer data instead of a generic default whenever one is available.
Interpreting the results
A shorter payback period and larger 25-year net profit both indicate a more favorable project. This is a simplified, pre-tax, pre-financing estimate: it excludes loan interest, tax credits or utility incentives, rising or falling electricity prices, gradual turbine performance degradation, and major-component replacement (such as a gearbox or blades) partway through the turbine's life. Treat the output as a planning estimate, and revisit it with real quotes and a site wind assessment before making a purchase decision.
Frequently Asked Questions
How is wind turbine profit calculated?
Annual energy production (AEP) equals turbine capacity in kW times the capacity factor times 8,760 hours per year. Multiplying AEP by your electricity rate gives annual revenue; subtracting annual O&M cost gives annual net profit. Payback period equals installed cost divided by annual net profit, and the lifetime figure multiplies annual net profit by the turbine's service life and subtracts the installed cost.
What capacity factor should I use?
Capacity factor is the share of a turbine's rated output it actually produces on average over a year, accounting for variable wind speeds and downtime. Small residential and community turbines commonly run 10-30%, while larger, taller, well-sited turbines can reach 35-45%. Use a site-specific estimate from a wind resource assessment or your turbine supplier when available, since local wind speed and turbine height matter more than any single default.
How long do wind turbines last?
Most wind turbines are designed for a service life of about 20 to 25 years, which is the period this calculator uses for its lifetime net profit estimate. Actual lifespan depends on maintenance, site conditions, and major-component replacement (such as blades or the gearbox) partway through that period.
What does this estimate leave out?
This is a simplified pre-tax, pre-financing estimate. It does not include loan interest, tax credits or utility incentives, electricity price changes over time, turbine performance degradation, major-component replacement costs, or decommissioning. Treat the payback period and lifetime profit as planning estimates, not a guaranteed financial return.