Payback Period Calculator
Estimate how many years an investment takes to pay for itself from the yearly cash it generates. Enter initial investment and annual cash flow to…
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Estimate how many years an investment takes to pay for itself from the yearly cash it generates. Enter initial investment and annual cash flow to see payback period when you calculate.
Worked example
Example calculated from the starting values. Enter your own values and press Calculate to get your result.
With the default inputs (initial investment = 50,000, annual cash flow = 14,000), the results are: payback period 3.57 years.
Quick reference: initial investment vs result
Reference table based on the example values; it is not your calculation result.
| Initial investment | Payback period |
|---|---|
| 25,000 | 1.79 years |
| 50,000 | 3.57 years |
| 100,000 | 7.14 years |
| 250,000 | 17.86 years |
| 500,000 | 35.71 years |
| 1,000,000 | 71.43 years |
Frequently asked questions
What formula does this calculator use?
Payback period = inv ÷ cf. Variables: inv = initial investment, cf = annual cash flow.
What do I need to enter?
You need initial investment, annual cash flow. Results update as you type.
What is an example result?
With the default inputs (initial investment = 50,000, annual cash flow = 14,000), the results are: payback period 3.57 years.
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