Payback Period Calculator
Shows how long it takes to get your money back.
Simple payback
— years
Share sends a link that reopens these numbers. Copy details pastes the full breakdown as a list.
Discounted payback — years
Reading this —
The formula
simple = investment ÷ annual cash flow discounted = −ln(1 − I × r ÷ C) ÷ ln(1 + r)
The discounted version allows for later money being worth less, so it is never shorter.
What to watch out for
It is a simple risk check rather than a measure of profit.
Frequently Asked Questions
How is payback period calculated?
Divide the investment by the yearly cash flow. 10,000 returning 2,500 a year pays back in 4 years.