Payback Period Calculator
Investment Details
Results
Enter your investment details and click calculate to see results
How Payback Period Calculation Works
1
Initial Investment
The amount of money you initially invest in a project or asset.
2
Annual Cash Flow
The net annual cash inflow that the investment generates.
3
Payback Period
The time required to recover the cost of the investment.
Formula
Payback Period = Initial Investment / Annual Cash Flow
For variable cash flows, we calculate cumulative cash flow each year until the initial investment is recovered.