Money & shopping
Simple payback period
Estimate when non-negative periodic cash inflows recover an initial outlay.
A clear answer. Here’s how.
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