Payback Period Calculator
See how many years to recover an investment.
Runs locally in your browser — your numbers never leave this pageTry: Initial investment=20000, Annual net cash flow=5000 → $20,000, $5,000, 4.00 years
How to use
Payback period is the time until cumulative cash flow equals the initial cost. Simple and popular, but it ignores cash after payback and the time value of money.
Formula
Payback = Investment / Annual cash flow
FAQ
What is the downside of payback?
It ignores returns after the payback point and does not discount for time.
When is it most useful?
As a quick risk filter for small, short-term projects.
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