Find how long an investment takes to pay back its cost.
Payback is the time until cumulative cash inflows equal the initial cost. A ₹5,00,000 investment returning ₹1,50,000, ₹1,80,000, ₹2,00,000… pays back in 2.85 years.
The payback period tells you how many years it takes for an investment's cash inflows to recover its cost. Enter the initial investment and the cash inflow for each year. The calculator gives the simple payback and the discounted payback, which discounts each year's inflow at your required rate.
Payback is easy to understand but ignores what happens after the payback date and (when simple) the time value of money, so use it with the IRR Calculator and ROI Calculator. Related: the Depreciation Calculator and Rental Property Calculator.
The calculator applies the standard financial formulas step by step.
| Item | Value |
|---|---|
| Initial investment | ₹5,00,000.00 |
| Total inflows over 5 years | ₹9,30,000.00 |
| Simple payback | 2.85 years (2 years 11 months) |
| Discounted payback at 10% | 3.47 years (3 years 6 months) |
| Case | Payback |
|---|---|
| Discount rate 0% | 2.85 years |
| Discount rate 5% | 2.85 years |
| Discount rate 10% | 2.85 years |
| Discount rate 15% | 2.85 years |
| Investment ₹4,00,000 | 2.35 years |
The time it takes for an investment's cash inflows to equal its initial cost.
The payback period after discounting each cash flow to present value at a required rate of return. It is always longer than the simple payback.
It means faster recovery and lower risk, but it ignores cash flows after the payback date, so it can favour short-lived projects.
Add inflows year by year until the cost is recovered and interpolate in the final year — the calculator does this.
The calculator tells you it is not recovered within the years you entered.
ROI measures how much you earn relative to cost; payback measures how quickly you get your money back.
It uses the standard formula: payback = years before recovery + unrecovered cost ÷ cash flow in the recovery year The full method and a worked example are shown on this page.
No. The calculator gives estimates for planning and learning. Real offers vary by lender, product and date, so confirm the details with your bank, lender or a qualified adviser before deciding.
Yes. The maths is identical in any currency; only the currency symbol shown in the results differs.
No. Everything is calculated in your browser and nothing you enter is uploaded or saved.
