Skip to main content

learn.howToCalculate

learn.whatIsHeading

Payback period is how long it takes for an investment to recover its initial cost through cash inflows. Simple but ignores time value of money; discounted payback is more accurate.

Formule

Payback = Year before recovery + (Unrecovered cost / Cash flow in recovery year)

Guide étape par étape

  1. 1List cash inflows by year
  2. 2Accumulate until initial investment is recovered
  3. 3Calculate exact time within the recovery year

Exemples résolus

Entrée
Initial: $10k, Flows: $3k, $4k, $5k
Résultat
Payback ≈ 2.2 years
Recovers in early year 3

Erreurs courantes à éviter

  • Ignoring time value of money
  • Not handling cash inflows before payback

Prêt à calculer ? Essayez la calculatrice gratuite Payback Period

Essayez-le vous-même →

Paramètres