Payback Period Calculator
Find out how long an investment takes to pay for itself. Enter the upfront cost and the expected yearly cash inflows — the calculator shows the payback period in years and months, helping you compare projects and judge risk before committing money.
Result
Enter values to see the result.
How to use
- Fill in the fields above with your own figures — results update live as you type.
- Inflows are added year by year until they cover the investment. The part year is estimated by the fraction of that years inflow still needed.
- Check the result box and adjust any rate or parameter to test other cases.
Note: Payback ignores cash flows after recovery and the time value of money — use NPV alongside it for big decisions.
Tips
- A shorter payback period usually means lower risk — the money comes back sooner.
- Payback ignores everything earned after the cost is recovered; pair it with total profit for the full picture.
- Use the same time unit for all inflows (all yearly or all monthly) to keep the result correct.
- Compare two projects side by side by entering the same starting conditions for both.