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Payback Period Calculator

Estimate how long an investment takes to recover from recurring cash benefits.

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Calculator inputs

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Your result

Calculated from the values above
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Payback period0.83 periodsPrimary calculated value
Cash benefit per periodSupporting metric
1,200.00
CalculationBased on your current inputs
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How it works

Method, formula and practical notes

Divide the initial investment by the recurring cash benefit per period.

FormulaPayback period = Initial investment ÷ Periodic cash benefit.
lightbulb Keep in mind
  • This simple model does not discount future cash flows.
Calculator guide

Payback Period Calculator

Estimate how long an investment takes to recover from recurring cash benefits.

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Formula

Payback period = Initial investment ÷ Periodic cash benefit.

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How it works

Divide the initial investment by the recurring cash benefit per period.

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Assumptions & notes

  • This simple model does not discount future cash flows.