Payback Period Calculator
Find how many months and years it takes for monthly net cash inflow to recover an investment.
- Payback period (years)
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What is the Payback Period Calculator?
The payback period calculator shows how long it takes for an investment to earn back its cost from steady monthly net cash inflow. Enter the investment and the monthly inflow to see the time in months and in years.
How it works
Payback months equal the investment divided by the monthly net cash inflow. Payback years equal the months divided by twelve. The method assumes the inflow is the same every month and ignores the time value of money, so treat it as a quick screening figure.
How to use it
- Enter the total investment.
- Enter the monthly net cash inflow after costs.
- Read the payback time in months and years.
Payback Period Calculator — FAQ
What is net cash inflow?
It is the extra cash the investment brings in each month after subtracting the extra costs of running it.
Does payback show profitability?
Not fully. It shows how quickly you recover cost, not what you earn after that, so use it alongside other measures.
What if the inflow is zero?
The tool shows zero, because the investment would never be recovered.