Investment Payback Calculator

Put money into a business or project and the first question is: when do I get it back? The payback period is the point where the money you have received adds up to the capital you put in. Enter the capital and your average monthly income, and this tool tells you how long that takes - and, if you want, what it costs you to have that money tied up instead of earning interest.

How to Use It

1. Enter the capital invested - the up-front amount.
2. Enter your average monthly income and any average monthly cost; the tool uses the net of the two.
3. Choose Ignore interest for the plain payback, or Include interest to account for the return you give up by tying the money up. With interest on, enter the annual rate.

How It Is Worked Out

The chart and table show two lines: the investment value you need to recover, and the payback received so far (your cumulative net income). Payback is the month the second line catches the first.

• Ignoring interest: the investment value is flat - just the capital. Payback is the capital divided by your net monthly income, rounded up to a whole month.
• Including interest: the capital is shown growing at the rate you give up by tying it up (the opportunity cost), so the line you must catch rises over time. Payback takes a little longer, and the tool shows how many extra months the interest adds.

If your income grows the payback line more slowly than the capital grows, the lines never meet and the investment does not pay back - the tool says so rather than showing a number.

Notes

This is a planning estimate, not financial advice, and it does not adjust for tax, inflation, or changing income. Numbers are unit-agnostic - read the amounts in whatever currency you use.

Related Tools

• Measure the overall return with the ROI calculator.
• See what the same capital could earn with the compound interest calculator.
• Plan toward a target with the savings goal calculator.