Payback Period
Formula
Initial Investment / Annual Cash Flow (if equal CFs)
Interactive Calculator
| Component | Value |
|---|---|
| Initial Investment | |
| Annual Cash Flow | |
| Payback Period | — |
CategoryTime Value of Money
ComponentsPayback Period (years); Initial Investment; Annual Cash Flow
Example400K / 100K = 4 years
External Links
- Payback period — Wikipedia