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Payback Period Calculator
Years until an investment recoups its cost.
Enter values to see your result
Frequently asked questions
Simple vs discounted payback?
Simple: ignores that ₹1 today > ₹1 next year. Discounted: properly values future cash flows at cost of capital.
Acceptable payback period?
Industry-dependent. Tech: 2-3 years. Manufacturing: 5-7 years. Real estate: 15-25 years. Compare to alternatives.
Why isn't payback the best metric?
Ignores cash flows after payback. A project recouping in 3 years but then earning nothing is worse than one recouping in 5 years with perpetual positive flow.
Payback vs NPV vs IRR?
Payback: quick/intuitive. NPV: rupee value created. IRR: % return. Use all three for robust analysis.