Payback Period Calculator

Years until the investment recovers its cost.

Payback Period Calculator by AIPreciseTools Β· Open the full calculator β†—

Simple payback

Payback period = initial cost Γ· annual cash flow. It ignores the time value of money. Use it for a quick check; for longer projects look at NPV or IRR.

Frequently asked questions

Does this include interest or inflation?

No. This is simple payback. It assumes constant annual cash flow and ignores discounting.

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