What is this calculator?
Estimate recovery time for an investment with constant annual net inflow.
What can you use it for?
Use this tool to compare a financial scenario using the assumptions you control. Estimate recovery time for an investment with constant annual net inflow.
How to use it
- Enter initial investment.
- Enter annual net cash inflow.
- Select Calculate (or Generate for random tools).
- Read the answer and any additional results below the form. Check the units and the limits of the method.
Formula and method
The formula uses the units and definitions shown above. Each input is substituted before the arithmetic is evaluated; the calculated output is rounded for display.
Worked example
Initial investment: 1000000, Annual net cash inflow: 250000. The result is 4 years (result).
Assumptions and limits
Simple undiscounted payback. Cash inflow is assumed constant.
Frequently asked questions
What inputs does the Payback Period Calculator need?
Use initial investment, annual net cash inflow. Read the answer and any additional results below the form. Check the units and the limits of the method.
What assumptions apply to the Payback Period Calculator?
Simple undiscounted payback. Cash inflow is assumed constant.