Financial calculator

Payback Period Calculator

Estimate how long it may take to recover an investment using simple and discounted payback period calculations.

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Investment Inputs

Initial Investment ($)

Annual Cash Flow ($)

Cash Flow Growth Rate (%)

Discount Rate (%)

Number of Periods to Display

Results

Simple Payback Period -

Discounted Payback Period -

This calculator is for educational purposes only. Consult with a qualified financial advisor before making investment decisions.

Payback Period Graph

Cash Flow Schedule

Period	Cash Flow	Discounted Cash Flow	Cumulative Cash Flow	Cumulative Discounted Cash Flow

Understanding Payback Period

The payback period is the time it takes to recover the cost of an investment. Simply put, it estimates when an investment reaches a break-even point.

Simple Payback Period

The simple payback period is calculated by dividing the initial investment by annual cash flow. If cash flows change over time, it is calculated by identifying the point where cumulative cash flows recover the initial investment.

Discounted Payback Period

The discounted payback period is similar, but it accounts for the time value of money by discounting future cash flows back to present value.