Summary
Estimate years to recover an investment from constant annual cash inflows.
Calculation details
Assumes level annual inflows and ignores discounting.
Formula
Payback years = initial investment / annual cash inflow.
Worked example
Worked example
Payback is 4 years.
How it works
Enter initial investment and assumed constant annual cash inflow. Discounting is ignored.
Frequently asked questions
What does the Payback Period Calculator calculate?
Assumes level annual inflows and ignores discounting.
Should I use this result for financial reporting?
Use it as an estimate and verify reporting, accounting, tax, and legal treatment with qualified professionals.