Payback Period Calculator
Find out how long it will take for an investment to pay for itself from its cash flows.
What is payback period?
Payback period is the amount of time it takes for an investment to generate enough cash flow to recover its initial cost. It’s a simple, widely used way to compare the risk and speed of return of different investments.
How this calculator works
Enter the initial investment amount and the expected annual cash flow it will generate. The calculator divides the investment by the annual cash flow to find the payback period in years, and also converts that into months.
This simplified version assumes equal annual cash flows and does not account for the time value of money (unlike discounted payback period). For general investment planning and education purposes only, not financial advice.