Payback Period Calculator
Simple payback period divides initial cost by annual net cash flow.
This calculator is free to use. Enable JavaScript to enter your values and see a result instantly.
How it works
Simple payback period divides initial cost by annual net cash flow.
Worked example
A $10,000 investment returning $2,500 each year pays back in four years.
Keep in mind
This simple measure ignores timing, discounting, and cash flows after payback.