Payback period calculator
Enter the cash you put in at the start and the cash you expect back each period. You get simple payback (undiscounted) and discounted payback using your annual discount rate. Fractional periods mean you recovered partway through the period that pushes cumulative cash above zero.
Enter the cash outlay at time 0 as a positive number.
Used only for discounted payback; same compounding as your periods (e.g. annual flows → annual rate).
| Period | Cash flow | Actions |
|---|---|---|
| 1 | ||
| 2 | ||
| 3 | ||
| 4 |
Simple payback
Run the calculator to see payback here.
Discounted payback
Run the calculator to see payback here.
Results are in the same time unit as your cash flow rows (e.g. years if one row per year).
How to read the result
Each row should be one period in the same time unit (e.g. Year 1, Year 2). The answer is in that unit—if each row is a year, payback is in years. If the tool reports that payback never occurs, cumulative inflows (or their present values) still fall short of the initial outlay within the rows you provided.
Pair with NPV and WACC
Discounted payback depends on your rate. A common next step is to estimate WACC or another hurdle, then run NPV for a full value picture.
Frequently asked questions
Simple vs discounted payback?
Simple uses raw cash flows; discounted deflates each inflow by your discount rate before cumulating.
Which discount rate?
Match it to project risk and period length—often a hurdle or cost of capital.
Replace NPV?
No—payback is a secondary screen; NPV/IRR drive economic value.