Payback Period Calculator
Calculate the payback period for an investment using the calculator below.
Results:
| Payback Period: | |
| Discounted Payback Period: |
On this page:
Payback Period Formula
payback\ period = \frac{investment}{annual\ cash\ flow}
Discounted Payback Period Formula
DPP = ln \left ( \frac{1}{1 − \frac{O_{1} \times r}{CF}} \right ) \div ln(1 + r)
[formula may scroll beyond screen]
where:
O1 = initial investment (outflow)
r = discount rate
CF = annual cash flow