Business
Payback Period Calculator
Calculate the simple payback period for an initial investment with a constant annual net cash inflow.
- Free to use
- Runs in your browser
- Level B · Industry formula
- Last reviewed 2026-08-16
Calculator guide
How to use the Payback Period Calculator
Calculate the simple payback period for an initial investment with a constant annual net cash inflow. Enter the requested values and select Calculate. The result and supporting values are produced locally in your browser.
Formula
Worked example
A $50,000 investment producing $12,500 in annual net cash inflow has a 4-year simple payback period.
What to keep in mind
- Simple payback ignores the time value of money and cash flows after the payback point.
- Use NPV or another discounted-cash-flow measure when the timing of money matters.
Methodology
This calculator uses deterministic arithmetic and performs the calculation locally in your browser. Verify assumptions, units, and source values for your specific use case.
Review standard: Level B · Industry formula. How calculator reviews work.
Frequently asked questions
What does this calculator calculate?
Calculate the simple payback period for an initial investment with a constant annual net cash inflow.
How is the result calculated?
Payback Period = Initial Investment ÷ Annual Net Cash Inflow.
Can I use the result for an important decision?
Use the result as a calculation aid and verify the inputs, assumptions, and applicable professional or regulatory requirements before relying on it for an important decision.
Does CalculateMeasure store the values I enter?
The calculator performs its arithmetic in your browser. The calculator itself does not need to send your entered values to a server to produce the result.