Calculation of Pay back period

Payback Period > Best Practices > Calculation of Pay back period

Calculation of Pay back period
How do we calculate payback period when the returns / cashflows are different each year?...Sign up

Comment on payback period Tecnique
Tichakunda Gumbo
Your payback period calculation formular is somehow too generalised in that it assumes that all projects will have equal annual cashflows.What about ...Sign up

Payback Period if annual cashflows vary?
Jaap de Jonge, Editor, Netherlands
In case the annual cashflows are not the same, the formula is still valid.
Suppose the same project is costing $200.000, but now the annual cashf...Sign up

Good resource
Peter Hansen
I found that this was a very useful website with relevant explanations and examples. Keep up the good work!...Sign up

Calculating payback period
Herson Deleon
Yes, it is difficult if the annual income of a certain company is not always constant. Obviously you will use a lot of operation just to get the accur...Sign up

Payback period calculation for Uneven cashflow over the years
Say my initial investment is $15,000 and my subsequent annual cash flows are 1) $11000, 2) $7000 and 3) $4800 Now how do you calculate the cash flow....Sign up

Pay back Period
Ade Osunsanmi
I think the the pay back period is just a cumulative sum of money to PAY BACK the initial investment . If your cash flows in the example you gave are ...Sign up

Payback period
Gabriel Hogan
Payback period is a great method but if you are considering investments in innovation it has its drawbacks, namely it does not account for the cost (l...Sign up

Payback Period
Mukela Namushi Mubano, Accountant, Zambia, Member
I do not think the formula dictates that the cash flows should be the same. Sometimes they may not be. The payback period is the period it takes for o...Sign up

Many Terms
Azzam Ali, Analyst, Saudi Arabia, Member
I observe that there are many methods calculating pp, and I wonder which one is the accurate one. Also sometimes we use many different terms ( net pro...Sign up

Sample Payback Period Computation with Different Annual Cashflow
Aser T. Alas, Jr., Philippines, Member
Payback period refers to the period of time required for the return on an investment to repay the sum of the original investment.
In computing th...Sign up

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Payback Period
Best Practices
  • Calculation of Pay back period


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