advanced Calculator
Payback Period Calculator
Calculate how long it takes to recover your investment. Payback period is a simple measure of investment risk.
₹10,00,000
₹
₹1,000₹1,00,00,00,000
₹2,50,000
₹
₹1,000₹1,00,00,00,000
Results
Payback Period
0
Payback (in months)
0
Annual ROI
0.00%
How to Use Payback Period Calculator
- 1
Enter initial investment
- 2
Input expected annual cash flow
- 3
View payback period
Payback Period Calculator Formula
Payback Period = Initial Investment / Annual Cash FlowExample Calculation
Input Values
Initial Investment
₹10,00,000
Annual Cash Flow
₹2,50,000
Results
Payback Period
4
Payback (in months)
48
Annual ROI
25%
Frequently Asked Questions
What is a good payback period?
Shorter is better. Generally, 3-5 years is acceptable for most business investments.
What are limitations of payback period?
It ignores time value of money and cash flows after payback. Use with NPV/IRR for better analysis.
What is discounted payback period?
It accounts for time value of money by discounting future cash flows, giving more accurate results.