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HOSTING A TOTAL OF 318 FORMULAS WITH CALCULATORS

Payback Period

The payback period formula is used to determine the length of time it will take to recoup the initial amount invested on a project or investment. The payback period formula is used for quick calculations and is generally not considered an end-all for evaluating whether to invest in a particular situation. The result of the payback period formula will match how often the cash flows are received

i p

Here,i=initial investment,p=periodic cash flow.

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