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Payback Period Calculator

Finance & Investment

Static and discounted payback with NPV reference

Quick Answer

Payback Period Calculator: Static and discounted payback with NPV reference. Payback Period Calculator uses standard finance formulas to compute accurate results instantly.

Static payback

3.3 yrs

ignores time value

Discounted payback

4.0 yrs

at 8% discount rate

NPV¥506,512
Total net cash¥1,000,000
Total ROI200.0%
Annual yield30.0%

Year-by-year cumulative

YearCash flowCumulativeDiscounted cum.
0-500,000-500,000-500,000
1+150,000-350,000-361,111
2+150,000-200,000-232,510
3+150,000-50,000-113,435
4 ←+150,000100,000-3,181
5+150,000250,00098,907
6+150,000400,000193,432
7+150,000550,000280,956
8+150,000700,000361,996
9+150,000850,000437,033
10+150,0001,000,000506,512

Steps

  1. 1Static payback = 500,000 ÷ 150,000 = 3.33 years
  2. 2Discounted: cumulative PV crosses 0 in year 5 → 4.03 years
  3. 3NPV = Σ CF/(1+8%)ᵗ − 500,000 = ¥506,512

💡 Rule of thumb: payback under 5 years is attractive for small business; VCs want under 3. Static payback ignores the time value of money — the discounted version is always longer. Payback measures RISK (how fast you get money back), not profitability; pair it with NPV/IRR for the full picture.

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How to Use

  1. Enter amounts and terms: fill principal, rate and period in the Payback Period Calculator (defaults work for a quick try).
  2. Instant results: key figures and cost breakdown update live as you type.
  3. Compare scenarios: tweak any parameter to compare costs and returns across plans.
  4. Copy key numbers: one-click copy for records or sharing with your advisor.

Key Points

  • Payback Period Calculator is a free online finance tool — open and use, no sign-up.
  • All calculations run locally in your browser; your data never leaves the device.
  • Key capability: Static and discounted payback with NPV reference.
  • Results come with formulas and reference tables so you can verify every number.

Formula & How It Works

Payback Period Calculator formula

Payback Period Calculator uses standard finance formulas to compute accurate results instantly.

FAQ

How do I use the Payback Period Calculator?
Open the page and fill in the input fields — results update automatically. Static and discounted payback with NPV reference.
Are the results accurate?
Yes. Standard financial formulas and published rate data are used. For official figures, consult your financial institution.
Is it free? Do I need to sign up?
Completely free. No registration, login or download required.
Can I use the results for financial decisions?
Results are for reference. Consult a licensed financial advisor before major decisions.
Does it work on mobile?
Yes. Fully responsive on phones, tablets and desktops.

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Source & Updates

Based on published rate tables and standard financial formulas. Last updated: 2025-07

Authoritative sources:

Last updated:

Formulas and content on this page are reviewed by the YiJianSuan team. For reference only — official sources prevail.

Maintained and periodically reviewed by the YiJianSuan editorial team — review process in ourEditorial Policy.

Cite this page: YiJianSuan. Payback Period Calculator[EB/OL]. https://www.yijiansuan.com/en/c/finance/payback

Results provided by this tool are for reference only and do not constitute professional advice.