Payback Period Calculator

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Payback period

How long it takes for a steady cash flow to pay back an initial investment.

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Payback period
  • Initial investment$0
  • Annual cash flow$0

Cumulative cash flow versus the investment

About this payback period calculator

Estimate how long it takes an initial investment to be recovered from recurring cash flow.

How to use it

Enter the values requested by the calculator. Results update in your browser as you change the inputs. Review the assumptions shown on the calculator before using the result.

Formula

payback period = initial investment ÷ periodic cash flow

Example

This simple payback calculation does not account for discounting or changing cash flows unless the inputs themselves reflect them.

Frequently asked questions

What does the payback period calculator show?

Estimate how long it takes an initial investment to be recovered from recurring cash flow.

Are the results exact?

The result is calculated from the inputs and assumptions shown on this page. For important financial, health, tax, or legal decisions, verify the result with an appropriate professional or authoritative source.