Most US windows are installed flush mounted or an "outie" window. I've been reading on GBA that a recessed window or an "innie" install actually provides better U-Value's because the window is more protected.
Journal of Light ConstructionGreen Building AdvisorFor a roof that has a 24" overhang and if one utilizes a window install that is an "innie" install, or one that sets the window deep within the wall towards the interior (12" thick wall). Let's say the window is recessed 8" from the exterior wall surface. Would one add this 8" to the total roof overhang equation?
24" roof overhang + 8" recessed window install = 32" total overhang
The formulas I've seen do not take into account recessed window installations, only roof overhang.