Payback Period Calculator
Find out how long it takes an investment to pay for itself.
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Initial Investment
50,000 (example)
Annual Cash Inflow
12,500 (example)
Payback Period
4.00 years
How the Payback Period Calculator Works
Formula: Payback Period = Initial Investment ÷ Annual Cash Inflow
This gives a simple, un-discounted estimate of how many years it takes for an investment’s cash inflows to equal its original cost. In the example above, a 50,000 investment returning 12,500 a year pays for itself in exactly 4 years.
This tool is provided for general informational purposes only and does not constitute financial advice. Verify results independently before making financial decisions.