Payback Period Calculator

Calculate the payback period for an investment using the calculator below.

per year


Payback Period:
Discounted Payback Period:
Learn how we calculated this below

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]

O1 = initial investment (outflow)
r = discount rate
CF = annual cash flow