Turndown Ratio Calculator

✖Fixed Capital Investment in $ term referred to as (CapEx), represents the funds that a company allocates for the acquisition, construction, expansion, or improvement of long-term physical assets.ⓘ Fixed Capital Investment [FCI]			+10% -10%
✖Total Capital Investment in $ terms refers to the overall amount of money that a company invests in a particular project, venture, or business initiative.ⓘ Total Capital Investment [TCI]			+10% -10%

✖Turndown ratio, in the context of industrial processes and equipment, refers to the ratio of the maximum capacity to the minimum controllable capacity of a system.ⓘ Turndown Ratio [T_d]

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Formula

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Turndown Ratio

Formula

`"T"_{"d"} = "FCI"/"TCI"`

Example

`"0.7"="14000"/"20000"`

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Turndown Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Turndown Ratio = Fixed Capital Investment/Total Capital Investment
T_d = FCI/TCI
This formula uses 3 Variables

Variables Used

Turndown Ratio - Turndown ratio, in the context of industrial processes and equipment, refers to the ratio of the maximum capacity to the minimum controllable capacity of a system.
Fixed Capital Investment - Fixed Capital Investment in $ term referred to as (CapEx), represents the funds that a company allocates for the acquisition, construction, expansion, or improvement of long-term physical assets.
Total Capital Investment - Total Capital Investment in $ terms refers to the overall amount of money that a company invests in a particular project, venture, or business initiative.

STEP 1: Convert Input(s) to Base Unit

Fixed Capital Investment: 14000 --> No Conversion Required
Total Capital Investment: 20000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

T_d = FCI/TCI --> 14000/20000

Evaluating ... ...

T_d = 0.7

STEP 3: Convert Result to Output's Unit

0.7 --> No Conversion Required

FINAL ANSWER

0.7 <-- Turndown Ratio

(Calculation completed in 00.004 seconds)

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Created by Heet

Thadomal Shahani Engineering College (Tsec), Mumbai

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University of Hawaiʻi at Mānoa (UH Manoa), Hawaii, USA

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< 11 Cost Estimation Calculators

Capital Cost of Project with Capacity Q2 using Sixth Tenth Rule

Go Capital Cost of Project with Capacity Q2 = Capital Cost of Project with Capacity Q1*((Capacity of Equipment 2/Capacity of Equipment 1)^(Value of Index))*(Cost Index 2/Cost Index 1)

Capital Cost of Project with Capacity Q1 using Sixth Tenth Rule

Go Capital Cost of Project with Capacity Q1 = Capital Cost of Project with Capacity Q2*((Capacity of Equipment 1/Capacity of Equipment 2)^(Value of Index))*(Cost Index 2/Cost Index 1)

Fixed Cost at Breakeven Point

Go Fixed Cost = Production Capacity at Breakeven Point*Selling Cost per Unit-Production Capacity at Breakeven Point*Production Cost per Unit

Cash Flow

Go Cash Flow = ((Total Sale Revenue-Total Product Cost-Depreciation)*(1-Tax Rate))+Depreciation

Net Profit

Go Net Profit = (Total Sale Revenue-Total Product Cost-Depreciation)*(1-Tax Rate)

Working Capital Investment

Go Working Capital Investment = Total Capital Investment-Fixed Capital Investment

Total Capital Investment

Go Total Capital Investment = Fixed Capital Investment+Working Capital Investment

Fixed Capital Investment

Go Fixed Capital Investment = Total Capital Investment-Working Capital Investment

Turndown Ratio

Go Turndown Ratio = Fixed Capital Investment/Total Capital Investment

Turnover Ratio

Go Turnover Ratio = Gross Annual Sales/Fixed Capital Investment

Total Production Cost Considering Fixed Cost and Variable Cost

Go Total Product Cost = Fixed Cost+Variable Cost

Turndown Ratio Formula

Turndown Ratio = Fixed Capital Investment/Total Capital Investment
T_d = FCI/TCI

What is Turndown Ratio?

Turndown, in the context of industrial processes and equipment, refers to the ability of a system to operate effectively and efficiently across a range of capacities or output levels. It measures the flexibility of a device, such as a valve, pump, or burner, to modulate or adjust its performance to accommodate varying demands.

This implies that half of the total capital investment is allocated to fixed assets. The interpretation of whether this ratio is considered high or low would depend on industry norms, project requirements, and financial strategies. A higher turndown ratio may suggest a more asset-intensive structure, while a lower ratio may indicate a more balanced allocation of capital.

What is Cost Estimation ?

Cost estimation is the process of estimating the total cost, typically in monetary terms, required to complete a project, construct a facility, develop a product, or provide a service. It is a critical aspect of project management, business planning, and decision-making. Cost estimation serves various purposes, including budgeting, financial planning, and assessing the feasibility of a project. Here are the key components and considerations of cost estimation.

How to Calculate Turndown Ratio?

Turndown Ratio calculator uses Turndown Ratio = Fixed Capital Investment/Total Capital Investment to calculate the Turndown Ratio, The Turndown Ratio formula refers to the ratio of the maximum capacity to the minimum controllable capacity of a system. It indicates the flexibility and adjustability of a device or system to operate effectively across a range of capacities. Turndown Ratio is denoted by T_d symbol.

How to calculate Turndown Ratio using this online calculator? To use this online calculator for Turndown Ratio, enter Fixed Capital Investment (FCI) & Total Capital Investment (TCI) and hit the calculate button. Here is how the Turndown Ratio calculation can be explained with given input values -> 0.7 = 14000/20000.

FAQ

What is Turndown Ratio?

The Turndown Ratio formula refers to the ratio of the maximum capacity to the minimum controllable capacity of a system. It indicates the flexibility and adjustability of a device or system to operate effectively across a range of capacities and is represented as T_d = FCI/TCI or Turndown Ratio = Fixed Capital Investment/Total Capital Investment. Fixed Capital Investment in $ term referred to as (CapEx), represents the funds that a company allocates for the acquisition, construction, expansion, or improvement of long-term physical assets & Total Capital Investment in $ terms refers to the overall amount of money that a company invests in a particular project, venture, or business initiative.

How to calculate Turndown Ratio?

The Turndown Ratio formula refers to the ratio of the maximum capacity to the minimum controllable capacity of a system. It indicates the flexibility and adjustability of a device or system to operate effectively across a range of capacities is calculated using Turndown Ratio = Fixed Capital Investment/Total Capital Investment. To calculate Turndown Ratio, you need Fixed Capital Investment (FCI) & Total Capital Investment (TCI). With our tool, you need to enter the respective value for Fixed Capital Investment & Total Capital Investment and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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