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Payback Period Calculator

Estimate simple payback with constant annual cash flows. It ignores discounting and cash flows after recovery.

Enter your values

Enter a numeric value. Use a non-negative value.
Enter a numeric value. Must be greater than zero.

Use a decimal point, without thousands separators.

Example result
Years
4

The initial result uses the example values. Enter your own values and calculate again.

Edit inputs

How it works

Estimate simple payback with constant annual cash flows. It ignores discounting and cash flows after recovery.

Inputs and units
Payback Period Calculator · Inputs and units
InputExample valueWhat to enter
Initial outlay20,000Enter a numeric value. Use a non-negative value.
Annual net cash inflow5,000Enter a numeric value. Must be greater than zero.
years = initial outlay/annual cash inflow

Worked example

Show example inputs and results

This example is generated by the same calculation engine using the starting values in the form. Your own inputs produce your own result.

Initial outlay
20,000
Annual net cash inflow
5,000

Complete example results

Years
4

Reading the result

Match the rate period to the payment period. Fees and taxes absent from the inputs are not added automatically; compare totals with the same cost coverage.

Questions and answers

Can I use the example values for my own calculation?

The example values illustrate the calculation. Replace every input with your own information, especially dates, rates and the selected operation.

Why are some results rounded?

Results display up to 8 decimal places. Calculations use the unrounded values; very small values use scientific notation. JavaScript floating-point arithmetic can introduce tiny rounding differences.

Are my inputs sent to a server?

The calculator processes inputs in your browser. Its code does not send your values to a server.

Methods & accuracy

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