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Payback Period Calculator

Years to recoup an initial investment.

Compute the payback period of an investment given an upfront cost and constant annual cash inflow. Reports the simple and the discounted payback period.

Nadia Almasri By Nadia Almasri
Published Last reviewed 1 min read

Inputs

$
$
%

Results

Enter values and click Calculate to see results.
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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

Simple payback = cost / annual_cash_flow. Discounted: years until Σ CF / (1+r)^t ≥ cost.

In depth

Compute the payback period of an investment given an upfront cost and constant annual cash inflow. Reports the simple and the discounted payback period.