What is the Payback Period Calculator?

The Payback Period Calculator is a financial tool that helps users determine the time it takes for an investment to recover its initial cost from the cumulative cash inflows. By entering the initial investment and projected annual cash flows, the tool calculates the exact payback period, including fractional years if needed. This is useful for investors, business analysts, and students who want to quickly assess the risk and liquidity of an investment. The calculator provides clear, accurate results, helping users understand how long it will take to break even.

How to Use:

1. Enter Initial Investment (PKR): Type the starting amount invested.
2. Enter Annual Cash Flows: List expected cash inflows for each year, separated by commas.
3. Click “Calculate”: The tool computes the cumulative cash flows and determines the payback period.
4. Review Result: The output displays the initial investment, cash flows, and the total payback period in years (including fractions), along with the formula used for reference.