Payback Period Calculator
See how many years an investment takes to recover from annual cash flow. Free payback period formula tool.
Parameters
Enter the required details below
Ready to Calculate
Enter your parameters and click calculate to see the results here.
How to Use
- Enter Initial Investment ($).
- Enter Annual Cash Flow ($).
- Click Calculate to see Payback Period, Years and Months.
- Check the result. Use Reset if you want to try different numbers.
About This Calculator
Payback period is initial investment divided by annual cash inflow when cash flows are even. This page reports years and months. It does not discount cash flows (use NPV for that).
Payback
years = initial investment / annual cash flow
Frequently asked questions
What is the payback period formula?+
For even cash flows: investment ÷ annual net cash flow. Uneven years need a cumulative running total.
Is Payback Period Calculator free to use?+
Yes. Payback Period Calculator is free and does not require an account. The calculation runs in your browser.
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