Payback Period Calculator
Work out how many months or years it takes to recover the cost of a business investment from its net cash inflows.
This calculator is unavailable.
How this calculator works
This calculator divides the upfront investment cost by the expected net cash inflow per period to show how long it takes to recover the initial outlay.
Frequently asked questions
What counts as net cash inflow?
The extra cash the investment generates each period, after any additional running costs it creates.
Is a shorter payback period always better?
Generally yes for risk management, though it doesn't account for total profitability over the investment's full life.
What if the investment never pays back?
If net cash inflow per period is zero or negative, the calculator will flag that payback cannot be reached.
Results are estimates only and are not financial, tax, legal or credit advice.
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