Payback Period Calculator
Estimate how long it may take to recover an investment using simple and discounted payback period calculations.
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This calculator is for educational purposes only. Consult with a qualified financial advisor before making investment decisions.
Payback Period Graph
Cash Flow Schedule
| Period | Cash Flow | Discounted Cash Flow | Cumulative Cash Flow | Cumulative Discounted Cash Flow |
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Understanding Payback Period
The payback period is the time it takes to recover the cost of an investment. Simply put, it estimates when an investment reaches a break-even point.
Simple Payback Period
The simple payback period is calculated by dividing the initial investment by annual cash flow. If cash flows change over time, it is calculated by identifying the point where cumulative cash flows recover the initial investment.
Discounted Payback Period
The discounted payback period is similar, but it accounts for the time value of money by discounting future cash flows back to present value.
Calculator note
Use this tool as a planning estimate, not final advice.
Harbourline Advisory CPAs offers these calculators as educational tools for Canadian visitors. Results should be reviewed alongside your own facts, province, financing terms, and tax situation before acting on them.
These calculators are provided for general informational purposes only and should not be treated as tax, accounting, legal, or financial advice. For guidance specific to your situation, please contact a qualified professional.