How to use the Payback Period Calculator

Estimate the simple investment payback period from project cost and annual net cash inflow.

Calculation formula

Simple payback period in years = initial investment ÷ expected annual net cash inflow.

Recommended steps

1. Enter values using the units shown beside each field.
2. Review whether the example assumptions match your situation.
3. Run the calculator and compare the key metrics.
4. Use the source data or official rates when precision matters.

Known limitations

Ignores time value of money and assumes flat annual cash flow; not discounted payback.