CAPITAL BUDGETING / RECOVERY

Payback Period Calculator

Estimate when cumulative annual cash flows recover an initial investment, including a fractional recovery year and the five-year surplus or shortfall.

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Conversion input

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Scenario

Initial investmentUpfront cash outflow to recover through later cash flows.INR

Annual cash flows

Year 1 cash flowNet cash flow received at the end of year 1; enter a negative amount for an additional outflow.INRYear 2 cash flowNet cash flow received at the end of year 2; enter a negative amount for an additional outflow.INRYear 3 cash flowNet cash flow received at the end of year 3; enter a negative amount for an additional outflow.INRYear 4 cash flowNet cash flow received at the end of year 4; enter a negative amount for an additional outflow.INRYear 5 cash flowNet cash flow received at the end of year 5; enter a negative amount for an additional outflow.INR

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Calculation path

Cash flows accumulate in order until they cover the initial amount; the unrecovered opening balance is divided by the recovery-year flow for a fractional year.

Calculation path

Payback = full years before recovery + unrecovered opening amount / cash flow in the recovery year.

What you provide

Initial investment: Upfront cash outflow to recover through later cash flows.
Year 1 cash flow: Net cash flow received at the end of year 1; enter a negative amount for an additional outflow.
Year 2 cash flow: Net cash flow received at the end of year 2; enter a negative amount for an additional outflow.
Year 3 cash flow: Net cash flow received at the end of year 3; enter a negative amount for an additional outflow.
Year 4 cash flow: Net cash flow received at the end of year 4; enter a negative amount for an additional outflow.
Year 5 cash flow: Net cash flow received at the end of year 5; enter a negative amount for an additional outflow.

What you receive

Estimated payback in years
Five-year cumulative cash flow
Surplus after the initial investment

Use boundary

Choose the maximum decimal places shown. This does not increase source accuracy.

Simple payback ignores discounting, financing, risk, and all cash flows after recovery, so pair it with NPV or IRR.

This calculator is an educational scenario model, not investment, tax, accounting, or valuation advice. Confirm definitions, timing, and decisions with source documents and a qualified professional.

Payback Period Calculator

Calculation path

What you provide

What you receive

Choose the maximum decimal places shown. This does not increase source accuracy.

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