Discounted Payback Period Calculator

Calculate NPV, DPP & IRR

Discounted Payback Period Calculator

($)
($) per year
year
(%) per year
%

Calculation Results

Payback Period
Discounted Payback Period
Cash Flow Return Rate

Detailed Cash Flow Table

TimeCash FlowNet Cash FlowDiscounted Cash FlowNet Discounted Cash Flow

How to Use This Calculator

Step-by-Step Instructions

  1. Initial Investment: Enter the upfront cost of your investment project in dollars.
  2. Cash Flow: Input the expected annual cash inflow from the investment.
  3. Time Period: Specify the analysis period in years.
  4. Cash Flow Growth:
    • Select "Increase" if cash flows are expected to grow over time
    • Select "Decrease" if cash flows are expected to decline
    • Enter the annual percentage change
  5. Discount Rate: Enter your required rate of return or cost of capital as a percentage.
  6. Click "Calculate Period" to generate results.

Interpreting Results

  • Payback Period: Time to recover initial investment (ignoring time value of money)
  • Discounted Payback Period: Time to recover initial investment considering present value
  • Cash Flow Return Rate (IRR): The rate of return that makes NPV equal to zero

References

Government and Academic Sources

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