How to use Payback Period Calculator
- Enter the positive initial outlay.
- List nonnegative net receipts, one per equal period.
- Review the recovery point or the remaining unrecovered amount.
Example: Payback Period Calculator
Initial outlay 1000; periodic receipts 300, 400, 500.
You add
Initial outlay 1000; periodic receipts 300, 400, 500.
You get
Payback is 2.6 periods, assuming the third receipt arrives uniformly within that period.
Supported inputs and limits
Up to 1,200 nonnegative periodic net receipts. Fractional recovery assumes a uniform receipt within the recovery period. No discounting, later negative cash flows or calendar dates. Enter plain decimals with at most 64 characters, 25 digits and 12 fractional places. Monetary inputs are limited to 10^12. Very small or large nonzero amounts use scientific notation. Use one currency throughout; no exchange rates, taxes or fees are added unless you enter them.
Where your input is processed
This tool processes your input in this browser. Your text and files are not uploaded to UseFreeTools. Check this tool's limits for anything it may save on your device.
Period-end and interpolated recovery
Cumulative receipts show the first period-end at which the outlay is covered. The fractional estimate divides the remaining outlay before that period by that period’s receipt.
Questions about Payback Period Calculator
What does a fraction of a period mean?
It is an interpolation within the first recovery period. It assumes that period’s receipt arrives evenly, rather than entirely at its end.
What if the investment is not recovered?
The result reports that recovery is not reached within the supplied periods and shows the outstanding amount.
Does payback include the time value of money?
No. This is simple undiscounted payback. NPV can discount a series using an entered per-period rate.