Finance
Payback Period
Years to recover an investment from equal cash flows.
Formula
Formula
T = costannual cash flow
Variables
| Symbol | Definition | Type & range | Units | Role |
|---|---|---|---|---|
| cost | initial investment | real number (ℝ) | — | input |
| cf | annual cash flow | real number (ℝ) | — | input |
Try it yourself
Interactive calculator
Worked examples
Example 1
Giveninvestment = 10000, annual cash flow = 2500
Result4
Example 2
Giveninvestment = 50000, annual cash flow = 8000
Result6.25