Simple Payback Period Calculator
Estimate time to recover a cost with constant net cash inflows.
Formula
- Use the units shown beside each field.
- Results update automatically whenever you change an input.
- Displayed values use up to four decimal places, or scientific notation for very small or large numbers. Calculations use standard floating-point arithmetic; exact integer and fraction tools identify their own precision rules.
- Undiscounted model; ignores the time value of money and post-payback cash flows.
Example Calculation
- Initial cost: 12000 $
- Annual net cash inflow: 3000 $
A $12,000 cost recovered at $3,000 per year has a four-year payback.
Frequently asked questions
How do I use this calculator?
Enter initial cost, annual net cash inflow. The result updates automatically. Use Reset to restore the example values.
What method does it use?
Payback period = initial cost / annual cash inflow. Undiscounted model; ignores the time value of money and post-payback cash flows.
Why might a rounded result differ?
The calculation keeps full numeric precision internally, then rounds the displayed result. Rounding intermediate steps by hand can produce a slightly different answer.
Are my inputs saved online?
No. This calculator processes your inputs in your browser. A recently used list stores only calculator names on this device, not your entered values.
Check the assumptions and units before using this result. Read about calculation methods.