Payback Period Calculator

Calculate how many years it takes to recover an investment given an annual return.

Inputs

$
$
Result

Payback Period

4 years

Approx. Months48

Example

Inputs

  • Investment$20000
  • Annual Return$5000

Result

  • Payback Period4 years
  • Approx. Months48

A $20,000 investment returning $5,000/year takes 4 years to recover.

How it works

Divide the upfront cost by what you get back each year.

Payback = Investment / Annual Return

FAQ

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