Payback Period Calculator
See how long it takes to recover an investment from annual cash flow.
Estimates for education only — not investment advice. Assumes equal annual cash flows and ignores the time value of money.
How it works
- 1Enter the initial investment.
- 2Enter the expected annual cash flow.
- 3See how many years it takes to break even.
Use cases
- Compare how quickly projects recover their cost.
- Screen investments by recovery time.
- Pair with NPV for a fuller picture.
Frequently asked questions
What is the payback period?
The time it takes for an investment’s cash flows to recover its initial cost. A shorter payback period is generally less risky.
Does it consider the time value of money?
No. The simple payback period treats all cash flows equally. Use NPV or IRR when the timing and discounting of cash flows matter.
Is my data stored?
No. Everything runs in your browser.
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