Payback Period Calculator
See how long an investment takes to repay its initial cost.
Payback period
4 yr 2 mo
In years
4.17
10-year net
$35,000
Fast, rough, useful
Payback period — cost ÷ annual cash flow — answers 'how long until I'm whole?' It's the quickest screen for solar panels, equipment, and efficiency upgrades: a 4-year payback on a 20-year asset is compelling; a 15-year payback on a 10-year asset is a rejection.
What it ignores
Simple payback ignores the time value of money and everything after the payback point. For close calls, follow up with NPV or IRR — a project paying back in year 6 but throwing off cash for 25 more years can beat one paying back in year 3 and stopping.
Frequently asked questions
- How does the Payback Period Calculator work?
- See how long an investment takes to repay its initial cost.
- Is the Payback Period Calculator free to use?
- Yes. The Payback Period Calculator is completely free, runs entirely in your browser, and requires no account or sign-up. Your inputs never leave your device.
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