Payback Period Calculator helps calculating the Payback Period
What is Payback Period?
Payback period in capital budgeting refers to the period of time required to recoup the funds expended in an investment, or to reach the break-even point.
In other words, The payback period is the time required to earn back the amount invested in an asset from its net cash flows.
The Formula of Payback Period
Payback Period = sum of incomes / sum of investmenst
Example of Payback Period
If a 00 investment made at the start of year 1 which returned 0 at the end of year 1 and year 2 respectively would have a two-year payback period.