Wind Turbine Profit Calculator
Estimate a wind turbine's annual energy production, revenue, simple payback, NPV, IRR and LCOE — or compare two scenarios side by side.
Single turbine
Compare 2 scenarios
Scenario A
Scenario B
How it is calculated
Worked example: a 2 MW turbine at 40% capacity factor and $0.06/kWh produces 7,008,000 kWh/year → $420,480/year revenue. With $2.6M capex and 2% opex ($52,000/year), net cash flow is $368,480/year → payback ≈ 7.06 years, NPV (8%, 25y) ≈ $1,333,442, IRR ≈ 13.59%, LCOE ≈ $0.0422/kWh.
Frequently asked questions
How much revenue can a 2 MW wind turbine generate per year?
As a worked example: a 2 MW turbine at a 40% capacity factor produces 2,000 x 8,760 x 0.40 = 7,008,000 kWh per year. At $0.06 per kWh that is $420,480 of annual revenue before operating costs. Enter your own numbers in the calculator above - this is a projection, not a guarantee.
What is the typical payback period for a wind turbine?
Simple payback equals capex divided by annual net cash flow. Example: $2,600,000 capex with $368,480 per year of net cash flow ($420,480 revenue minus 2% opex of $52,000) gives about 7.06 years. If operating costs eat all revenue, payback is shown as never.
What is capacity factor and what value should I use?
Capacity factor is actual annual output divided by the maximum possible output (rated power x 8,760 hours). Onshore projects commonly assume 35-45%, but treat that as an editable assumption, not a fact - your site's wind resource decides the real value. The calculator defaults to 40%.
What is LCOE and how is it calculated here?
Levelized cost of energy is discounted lifetime costs divided by discounted lifetime energy. In the worked example, with an 8% discount rate over 25 years, LCOE is about $0.0422/kWh - below the $0.06/kWh tariff, which is why NPV is positive at roughly $1,333,442. If LCOE exceeds your tariff, the project loses money.
Is a positive NPV a guarantee of profit?
No. NPV, IRR and payback here are projections built on your assumptions: capacity factor, tariff, capex, opex, discount rate, and a constant annual cash flow with no tariff escalation, degradation or taxes. Real projects face wind variability, downtime, maintenance spikes and financing costs. This tool is not investment advice.
How is IRR calculated?
IRR is the discount rate that makes NPV exactly zero, found by bisection on the NPV formula. The worked example has an IRR of about 13.59%. When cash flow never repays capex, there is no IRR - the calculator shows n/a instead of inventing a number.
Does the calculator include taxes, degradation or tariff escalation?
No. Annual net cash flow is held constant for the whole project life. Turbine degradation, availability losses, taxes and tariff escalation are not modeled - treat the results as a first screening, then model the details in a full financial model.
What does the comparison mode do?
It runs the same calculation twice - Scenario A and Scenario B - and shows every metric side by side with a B-minus-A difference column, so you can compare turbine sizes, sites or tariff offers.
What discount rate should I use?
The discount rate reflects your cost of capital and risk, and it is editable (default 8%). A higher rate lowers NPV. Set it to 0% to see the undiscounted lifetime total, shown as lifetime net in the results.
Why does the calculator show never for payback?
Simple payback only exists when annual net cash flow is positive. If opex consumes all revenue - for example a 12% capacity factor at a $0.03/kWh tariff with high capex - the turbine never repays its cost under these assumptions. NPV is negative and IRR shows n/a.
Free tool by NRTechStudio