Payback Period Calculator
Find the time required to recover an investment, with and without discounting.
Compare simple and discounted payback periods.
Result
Calculation details
Scroll horizontally or vertically to see more. Download CSV for the complete schedule.
| Year | Cash flow | Net cumulative | Discounted cash flow | Discounted cumulative |
|---|---|---|---|---|
| 1 | 3,000 | -7,000 | 2,857.14 | -7,142.86 |
| 2 | 3,000 | -4,000 | 2,721.09 | -4,421.77 |
| 3 | 3,000 | -1,000 | 2,591.51 | -1,830.26 |
| 4 | 3,000 | 2,000 | 2,468.11 | 637.85 |
| 5 | 3,000 | 5,000 | 2,350.58 | 2,988.43 |
| 6 | 3,000 | 8,000 | 2,238.65 | 5,227.08 |
| 7 | 3,000 | 11,000 | 2,132.04 | 7,359.12 |
| 8 | 3,000 | 14,000 | 2,030.52 | 9,389.64 |
| 9 | 3,000 | 17,000 | 1,933.83 | 11,323.47 |
| 10 | 3,000 | 20,000 | 1,841.74 | 13,165.20 |
How to use this calculator
Compare simple and discounted payback periods. Enter amounts in the units shown, select the applicable options, and click Calculate. Use Reset to restore the starting values.
Calculation formula
Find when cumulative (discounted) cash flow first recovers the initial investment.
Assumptions and accuracy
Review timing, rates, fees and result notes when comparing scenarios. Future returns and rates are assumptions rather than guaranteed outcomes. Monetary display follows the currency’s precision; intermediate calculations retain additional digits.
Choose what to calculate
Payback period calculator with uneven cash flows
Estimate when cumulative cash flows recover the initial investment. Payback time alone does not measure the full investment return.
Open this calculationUnderstanding this calculation
Estimate when cumulative cash inflows recover an initial investment. Discounted payback and net present value also reflect the selected time value of money.
Worked examples
Recover an investment with four equal inflows
Illustrative inputs are specified in the steps below; the example link loads the complete settings. Unmentioned settings use the linked defaults.
- Four annual inflows of 2,500 total 10,000, matching the initial investment. At a zero discount rate the NPV is 10,000 − 10,000 = 0 and recovery takes four years.
Net present value: 0 USD.
Try these inputsCommon questions
How is discounted payback different from simple payback?
Discounted payback reduces future inflows to present value first. At a positive discount rate it may take longer to recover the investment.
Does the shortest payback always identify the best project?
No. Consider later cash flows, total NPV and uncertainty rather than relying only on recovery speed.
Scope and assumptions
Interpolation assumes part-period recovery within the modeled flow pattern. Payback alone ignores value after the recovery date.
Sources
- Calculation methodology, rule versions and testing limitations
- Reference calculator for feature comparison (not a model-parity certification)
Calculation notes checked . Examples are mathematical checks under the stated assumptions.
Calculation methods and formulas
Fixed Cash Flow
Compare simple and discounted payback periods.
Find when cumulative (discounted) cash flow first recovers the initial investment.
Irregular Cash Flows
Compare simple and discounted payback periods.
Find when cumulative (discounted) cash flow first recovers the initial investment.
See our calculation methodology and review status for data versions, rounding and validation limitations.