💰 Finance
Payback Period Calculator
The payback period is the time until cumulative cash flow covers the initial outlay. It ignores everything after that point, which makes it a blunt instrument — but it is still the fastest way to screen a project. The discounted version counts the same years while shrinking each year of cash flow by your discount rate.
Cumulative cash flow
Year-by-year recovery
| Year | Cash flow | Cumulative cash flow | Cumulative discounted |
|---|---|---|---|
| 1 | 6,000.00$ | 6,000.00$ | 5,555.56$ |
| 2 | 6,000.00$ | 12,000.00$ | 10,699.59$ |
| 3 | 6,000.00$ | 18,000.00$ | 15,462.58$ |
| 4 | 6,000.00$ | 24,000.00$ | 19,872.76$ |
| 5 | 6,000.00$ | 30,000.00$ | 23,956.26$ |
| 6 | 6,000.00$ | 36,000.00$ | 27,737.28$ |
| 7 | 6,000.00$ | 42,000.00$ | 31,238.22$ |
| 8 | 6,000.00$ | 48,000.00$ | 34,479.83$ |
| 9 | 6,000.00$ | 54,000.00$ | 37,481.33$ |
| 10 | 6,000.00$ | 60,000.00$ | 40,260.49$ |
How it works
Initial investment
Annual cash flow
Discount rate
Years to project
Payback period
Discounted payback period
Total cash received
Present value of inflows
Surplus after payback
Frequently asked questions
How do I use the Payback Period Calculator?
Fill in the fields above — the result recalculates instantly as you type. Everything runs in your browser, so the values you enter are never collected or stored.
Is this calculator free?
Yes. It is completely free, requires no account, and works on phones, tablets and desktops.