Payback Period Calculator
How long to recover an investment.
Enter your values
Results update instantly as you type — no submit needed.
Results
- Payback period
- 3.33 years
- In months
- 40
- Discounted payback
- 5 years
- Cash recovered in 5 years
- $90,000.00
Quick answer
Payback period is the time until cumulative cash flow turns positive — a quick liquidity screen rather than a profitability measure.
Payback = Investment ÷ Annual cash flow
How to use the Payback Period Calculator
- 1Enter the upfront investment.
- 2Enter the annual cash it generates.
- 3Add a discount rate for the time-value version.
Frequently asked questions
What is a good payback period?
Under 3 years for equipment, under 12 months for marketing spend.
Why use discounted payback?
It accounts for the fact that later cash is worth less today.