Money & shopping

Simple payback period

Estimate when non-negative periodic cash inflows recover an initial outlay.

Simple payback period
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Adds non-negative end-of-period cash inflows until they cover the initial outlay. Interpolates the final period assuming its inflow is earned evenly. This undiscounted measure ignores cash flows after recovery and the time value of money; up to 1,200 equal periods.

See a worked example

Worked example

A fixed demonstration, separate from the values you enter above.

Initial outlay
10000
End-of-period net cash flows
3000
4000
5000

Example result

Payback period
2.6 periods
Total supplied inflows
12,000.00
Unrecovered outlay
0.00