diff --git a/Cargo.lock b/Cargo.lock
index 9dc651f69..1698d085c 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -99,9 +99,9 @@ checksum = "e16d2d3311acee920a9eb8d33b8cbc1787ce4a264e85f964c2404b969bdcd487"
 
 [[package]]
 name = "autocfg"
-version = "1.4.0"
+version = "1.5.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "ace50bade8e6234aa140d9a2f552bbee1db4d353f69b8217bc503490fc1a9f26"
+checksum = "c08606f8c3cbf4ce6ec8e28fb0014a2c086708fe954eaa885384a6165172e7e8"
 
 [[package]]
 name = "backtrace"
@@ -168,9 +168,9 @@ checksum = "793db76d6187cd04dff33004d8e6c9cc4e05cd330500379d2394209271b4aeee"
 
 [[package]]
 name = "cc"
-version = "1.2.26"
+version = "1.2.27"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "956a5e21988b87f372569b66183b78babf23ebc2e744b733e4350a752c4dafac"
+checksum = "d487aa071b5f64da6f19a3e848e3578944b726ee5a4854b82172f02aa876bfdc"
 dependencies = [
  "jobserver",
  "libc",
@@ -291,6 +291,12 @@ dependencies = [
  "windows-sys 0.59.0",
 ]
 
+[[package]]
+name = "convert_case"
+version = "0.4.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "6245d59a3e82a7fc217c5828a6692dbc6dfb63a0c8c90495621f7b9d79704a0e"
+
 [[package]]
 name = "core-foundation-sys"
 version = "0.8.7"
@@ -327,6 +333,19 @@ dependencies = [
  "powerfmt",
 ]
 
+[[package]]
+name = "derive_more"
+version = "0.99.20"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "6edb4b64a43d977b8e99788fe3a04d483834fba1215a7e02caa415b626497f7f"
+dependencies = [
+ "convert_case",
+ "proc-macro2",
+ "quote",
+ "rustc_version",
+ "syn",
+]
+
 [[package]]
 name = "displaydoc"
 version = "0.2.5"
@@ -698,9 +717,9 @@ checksum = "bbd2bcb4c963f2ddae06a2efc7e9f3591312473c50c6685e1f298068316e66fe"
 
 [[package]]
 name = "libc"
-version = "0.2.172"
+version = "0.2.174"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "d750af042f7ef4f724306de029d18836c26c1765a54a6a3f094cbd23a7267ffa"
+checksum = "1171693293099992e19cddea4e8b849964e9846f4acee11b3948bcc337be8776"
 
 [[package]]
 name = "libgit2-sys"
@@ -721,7 +740,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "07033963ba89ebaf1584d767badaa2e8fcec21aedea6b8c0346d487d49c28667"
 dependencies = [
  "cfg-if",
- "windows-targets 0.53.0",
+ "windows-targets 0.53.2",
 ]
 
 [[package]]
@@ -756,9 +775,9 @@ checksum = "13dc2df351e3202783a1fe0d44375f7295ffb4049267b0f3018346dc122a1d94"
 
 [[package]]
 name = "memchr"
-version = "2.7.4"
+version = "2.7.5"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "78ca9ab1a0babb1e7d5695e3530886289c18cf2f87ec19a575a0abdce112e3a3"
+checksum = "32a282da65faaf38286cf3be983213fcf1d2e2a58700e808f83f4ea9a4804bc0"
 
 [[package]]
 name = "minimal-lexical"
@@ -785,6 +804,7 @@ dependencies = [
  "clap",
  "clap-markdown",
  "csv",
+ "derive_more",
  "fern",
  "float-cmp",
  "highs",
@@ -885,9 +905,9 @@ dependencies = [
 
 [[package]]
 name = "plist"
-version = "1.7.1"
+version = "1.7.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "eac26e981c03a6e53e0aee43c113e3202f5581d5360dae7bd2c70e800dd0451d"
+checksum = "3d77244ce2d584cd84f6a15f86195b8c9b2a0dfbfd817c09e0464244091a58ed"
 dependencies = [
  "base64",
  "indexmap",
@@ -913,9 +933,9 @@ checksum = "439ee305def115ba05938db6eb1644ff94165c5ab5e9420d1c1bcedbba909391"
 
 [[package]]
 name = "prettyplease"
-version = "0.2.33"
+version = "0.2.34"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "9dee91521343f4c5c6a63edd65e54f31f5c92fe8978c40a4282f8372194c6a7d"
+checksum = "6837b9e10d61f45f987d50808f83d1ee3d206c66acf650c3e4ae2e1f6ddedf55"
 dependencies = [
  "proc-macro2",
  "syn",
@@ -941,9 +961,9 @@ dependencies = [
 
 [[package]]
 name = "quick-xml"
-version = "0.32.0"
+version = "0.37.5"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "1d3a6e5838b60e0e8fa7a43f22ade549a37d61f8bdbe636d0d7816191de969c2"
+checksum = "331e97a1af0bf59823e6eadffe373d7b27f485be8748f71471c662c1f269b7fb"
 dependencies = [
  "memchr",
 ]
@@ -959,9 +979,9 @@ dependencies = [
 
 [[package]]
 name = "r-efi"
-version = "5.2.0"
+version = "5.3.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "74765f6d916ee2faa39bc8e68e4f3ed8949b48cccdac59983d287a7cb71ce9c5"
+checksum = "69cdb34c158ceb288df11e18b4bd39de994f6657d83847bdffdbd7f346754b0f"
 
 [[package]]
 name = "regex"
@@ -1146,9 +1166,9 @@ checksum = "7da8b5736845d9f2fcb837ea5d9e2628564b3b043a70948a3f0b778838c5fb4f"
 
 [[package]]
 name = "syn"
-version = "2.0.102"
+version = "2.0.103"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "f6397daf94fa90f058bd0fd88429dd9e5738999cca8d701813c80723add80462"
+checksum = "e4307e30089d6fd6aff212f2da3a1f9e32f3223b1f010fb09b7c95f90f3ca1e8"
 dependencies = [
  "proc-macro2",
  "quote",
@@ -1437,9 +1457,9 @@ dependencies = [
 
 [[package]]
 name = "windows-link"
-version = "0.1.1"
+version = "0.1.3"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "76840935b766e1b0a05c0066835fb9ec80071d4c09a16f6bd5f7e655e3c14c38"
+checksum = "5e6ad25900d524eaabdbbb96d20b4311e1e7ae1699af4fb28c17ae66c80d798a"
 
 [[package]]
 name = "windows-result"
@@ -1495,9 +1515,9 @@ dependencies = [
 
 [[package]]
 name = "windows-targets"
-version = "0.53.0"
+version = "0.53.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "b1e4c7e8ceaaf9cb7d7507c974735728ab453b67ef8f18febdd7c11fe59dca8b"
+checksum = "c66f69fcc9ce11da9966ddb31a40968cad001c5bedeb5c2b82ede4253ab48aef"
 dependencies = [
  "windows_aarch64_gnullvm 0.53.0",
  "windows_aarch64_msvc 0.53.0",
@@ -1607,9 +1627,9 @@ checksum = "271414315aff87387382ec3d271b52d7ae78726f5d44ac98b4f4030c91880486"
 
 [[package]]
 name = "winnow"
-version = "0.7.10"
+version = "0.7.11"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "c06928c8748d81b05c9be96aad92e1b6ff01833332f281e8cfca3be4b35fc9ec"
+checksum = "74c7b26e3480b707944fc872477815d29a8e429d2f93a1ce000f5fa84a15cbcd"
 dependencies = [
  "memchr",
 ]
diff --git a/Cargo.toml b/Cargo.toml
index 2bf9ee480..d458db9ee 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -31,6 +31,7 @@ indexmap = "2.9.0"
 human-panic = "2.0.2"
 clap-markdown = "0.1.5"
 platform-info = "2.0.5"
+derive_more = "0.99"
 
 [dev-dependencies]
 regex = "1.11.1"
diff --git a/src/lib.rs b/src/lib.rs
index 7c1fc951f..ba7f2a61c 100644
--- a/src/lib.rs
+++ b/src/lib.rs
@@ -7,6 +7,7 @@ pub mod commodity;
 pub mod id;
 pub mod input;
 pub mod log;
+pub mod metrics;
 pub mod model;
 pub mod output;
 pub mod process;
@@ -14,6 +15,7 @@ pub mod region;
 pub mod settings;
 pub mod simulation;
 pub mod time_slice;
+pub mod units;
 pub mod year;
 
 #[cfg(test)]
diff --git a/src/metrics.rs b/src/metrics.rs
new file mode 100644
index 000000000..b4f8e075c
--- /dev/null
+++ b/src/metrics.rs
@@ -0,0 +1,65 @@
+#![allow(missing_docs)]
+
+use crate::units::*;
+
+/// Calculates the capital recovery factor (CRF) for a given lifetime and discount rate.
+///
+/// The CRF is used to annualize capital costs over the lifetime of an asset.
+pub fn capital_recovery_factor(lifetime: IYear, discount_rate: Dimensionless) -> Dimensionless {
+    if lifetime == IYear(0) {
+        return Dimensionless(0.0);
+    }
+    if discount_rate == Dimensionless(0.0) {
+        return Dimensionless(1.0 / lifetime.0 as f64);
+    }
+    let factor = (Dimensionless(1.0) + discount_rate).powi(lifetime.0 as i32);
+    (discount_rate * factor) / (factor - Dimensionless(1.0))
+}
+
+/// Calculates the annual capital cost for a technology
+pub fn annual_capital_cost(
+    capital_cost: MoneyPerCapacity,
+    capacity: Capacity,
+    lifetime: IYear,
+    discount_rate: Dimensionless,
+) -> MoneyPerYear {
+    let crf = capital_recovery_factor(lifetime, discount_rate);
+    let total_capital_cost = capital_cost * capacity * crf;
+    let annual_capital_cost = total_capital_cost * crf;
+    MoneyPerYear(annual_capital_cost.0) // this is an annualized quantity, so we return it as such
+}
+
+/// Calculates the annual fixed operating cost for a technology
+pub fn annual_fixed_operating_cost(
+    fixed_operating_cost: MoneyPerCapacityPerYear,
+    capacity: Capacity,
+) -> MoneyPerYear {
+    fixed_operating_cost * capacity
+}
+
+/// Calculates the annual fixed costs for a technology
+///
+/// This is the sum of the annual capital cost and the annual fixed operating cost.
+pub fn annual_fixed_costs(
+    capital_cost: MoneyPerCapacity,
+    capacity: Capacity,
+    lifetime: IYear,
+    discount_rate: Dimensionless,
+    fixed_operating_cost: MoneyPerCapacityPerYear,
+) -> MoneyPerYear {
+    let annual_capital_cost = annual_capital_cost(capital_cost, capacity, lifetime, discount_rate);
+    let annual_fixed_operating_cost = annual_fixed_operating_cost(fixed_operating_cost, capacity);
+    annual_capital_cost + annual_fixed_operating_cost
+}
+
+/// Calculates the annual variable cost for a technology
+pub fn annual_variable_cost(
+    variable_operating_cost: MoneyPerActivity,
+    capacity: Capacity,
+    cap2act: ActivityPerCapacity,
+    utilization: Dimensionless,
+) -> MoneyPerYear {
+    let capacity_a = capacity * cap2act;
+    let annual_variable_cost = variable_operating_cost * capacity_a * utilization;
+    MoneyPerYear(annual_variable_cost.0) // this is an annualized quantity, so we return it as such
+}
diff --git a/src/units.rs b/src/units.rs
new file mode 100644
index 000000000..f5d18e0d1
--- /dev/null
+++ b/src/units.rs
@@ -0,0 +1,158 @@
+//! This module defines various unit types and their conversions.
+
+/// Represents a dimensionless quantity.
+#[derive(Debug, Clone, Copy, PartialEq, derive_more::Add, derive_more::Sub)]
+pub struct Dimensionless(pub f64);
+
+impl std::ops::Mul for Dimensionless {
+    type Output = Dimensionless;
+
+    fn mul(self, rhs: Dimensionless) -> Self::Output {
+        Dimensionless::from(self.0 * rhs.0)
+    }
+}
+
+impl std::ops::Div for Dimensionless {
+    type Output = Dimensionless;
+
+    fn div(self, rhs: Dimensionless) -> Self::Output {
+        Dimensionless::from(self.0 / rhs.0)
+    }
+}
+
+impl Dimensionless {
+    /// Raise the dimensionless quantity to the power of an integer.
+    pub fn powi(self, rhs: i32) -> Self {
+        Dimensionless::from(self.0.powi(rhs))
+    }
+}
+
+impl From<f64> for Dimensionless {
+    fn from(val: f64) -> Self {
+        Self(val)
+    }
+}
+
+impl From<Dimensionless> for f64 {
+    fn from(val: Dimensionless) -> Self {
+        val.0
+    }
+}
+
+macro_rules! unit_struct {
+    ($name:ident) => {
+        /// Represents a type of quantity.
+        #[derive(Debug, Clone, Copy, PartialEq, derive_more::Add, derive_more::Sub)]
+        pub struct $name(pub f64);
+
+        impl $name {
+            /// Creates a new instance of the unit type from a f64 value.
+            pub fn from(val: f64) -> Self {
+                Self(val)
+            }
+
+            /// Returns the value of the unit type as a f64.
+            pub fn value(self) -> f64 {
+                self.0
+            }
+        }
+
+        impl std::ops::Mul<Dimensionless> for $name {
+            type Output = $name;
+            fn mul(self, rhs: Dimensionless) -> $name {
+                $name::from(self.0 * rhs.0)
+            }
+        }
+
+        impl std::ops::Mul<$name> for Dimensionless {
+            type Output = $name;
+            fn mul(self, rhs: $name) -> $name {
+                $name::from(self.0 * rhs.0)
+            }
+        }
+
+        impl std::ops::Div<Dimensionless> for $name {
+            type Output = $name;
+            fn div(self, rhs: Dimensionless) -> $name {
+                $name::from(self.0 / rhs.0)
+            }
+        }
+    };
+}
+
+macro_rules! impl_div {
+    ($Lhs:ty, $Rhs:ty, $Out:ty) => {
+        impl std::ops::Div<$Rhs> for $Lhs {
+            type Output = $Out;
+            fn div(self, rhs: $Rhs) -> $Out {
+                <$Out>::from(self.0 / rhs.0)
+            }
+        }
+
+        impl std::ops::Mul<$Rhs> for $Out {
+            type Output = $Lhs;
+            fn mul(self, by: $Rhs) -> $Lhs {
+                <$Lhs>::from(self.0 * by.0)
+            }
+        }
+
+        impl std::ops::Mul<$Lhs> for $Out {
+            type Output = $Rhs;
+            fn mul(self, by: $Lhs) -> $Rhs {
+                <$Rhs>::from(self.0 * by.0)
+            }
+        }
+
+        impl std::ops::Mul<$Out> for $Rhs {
+            type Output = $Lhs;
+            fn mul(self, by: $Out) -> $Lhs {
+                <$Lhs>::from(self.0 * by.0)
+            }
+        }
+
+        impl std::ops::Mul<$Out> for $Lhs {
+            type Output = $Rhs;
+            fn mul(self, by: $Out) -> $Rhs {
+                <$Rhs>::from(self.0 * by.0)
+            }
+        }
+    };
+}
+
+// Base quantities
+unit_struct!(Money);
+unit_struct!(Energy);
+unit_struct!(Activity);
+unit_struct!(Capacity);
+unit_struct!(Year);
+
+// Derived quantities
+unit_struct!(EnergyPerYear);
+unit_struct!(MoneyPerYear);
+unit_struct!(MoneyPerEnergy);
+unit_struct!(MoneyPerCapacity);
+unit_struct!(EnergyPerCapacityPerYear);
+unit_struct!(MoneyPerCapacityPerYear);
+unit_struct!(MoneyPerEnergyPerYear);
+unit_struct!(MoneyPerActivity);
+unit_struct!(MoneyPerActivityPerYear);
+unit_struct!(ActivityPerCapacity);
+
+// Simple relationships
+impl_div!(Energy, Year, EnergyPerYear);
+impl_div!(Money, Year, MoneyPerYear);
+impl_div!(Money, Energy, MoneyPerEnergy);
+impl_div!(Money, Capacity, MoneyPerCapacity);
+impl_div!(Money, Activity, MoneyPerActivity);
+impl_div!(Activity, Capacity, ActivityPerCapacity);
+
+// Complex relationships
+impl_div!(EnergyPerYear, Capacity, EnergyPerCapacityPerYear);
+impl_div!(MoneyPerYear, Capacity, MoneyPerCapacityPerYear);
+impl_div!(Money, EnergyPerYear, MoneyPerEnergyPerYear);
+impl_div!(MoneyPerEnergy, Year, MoneyPerEnergyPerYear);
+impl_div!(MoneyPerYear, Activity, MoneyPerActivityPerYear);
+
+/// Represents a number of years as an integer.
+#[derive(Debug, Clone, Copy, PartialEq, derive_more::Add, derive_more::Sub)]
+pub struct IYear(pub u32);