Payback Period Calculator
Investment payback period.
Result
Payback period
5years
Common questions
What is the payback period?
The payback period is how long it takes for an investment to generate enough cash flow to recover the initial cost. Shorter payback periods mean lower risk.
How do I calculate payback period?
For equal cash flows: Payback Period = Initial Investment ÷ Annual Cash Flow. For unequal cash flows, sum each period's cash flow until the total equals the investment.