Payback Period Calculator

The payback period is the ratio of initial investment to the periodic cash flow. It is used to determine the length of time it will take to recoup the initial amount invested on a project or investment. The payback period is used for the quick reference and is generally not considered an end-all for evaluating whether to invest in a particular situation. Enter all the required fields in this payback period calculator to find the resultant value.

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Savings
Currently Saved Amount
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Rate of Return (After Tax) %
 

Result :

Amount to Save
Number of Periods to Save Amount
Example: A person invested an initial amount of 50000 INR and the average annual cash flow for 1st year is 1000, 2nd year is 10000 and 3rd year is 15000. Calculate Payback Period.

Solution:
Average Annual Cash Flows = (1000 + 10000 + 15000) / 3
= 26000 / 3 = 8666.66
Payback period = 50000 / 8666.66 = 85.769