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
| Time | Cash Flow | Net Cash Flow | Discounted Cash Flow | Net Discounted Cash Flow |
|---|
How to Use This Calculator
Step-by-Step Instructions
- Initial Investment: Enter the upfront cost of your investment project in dollars.
- Cash Flow: Input the expected annual cash inflow from the investment.
- Time Period: Specify the analysis period in years.
- 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
- Discount Rate: Enter your required rate of return or cost of capital as a percentage.
- 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
- U.S. Department of Energy - Simple Payback and Internal Rate of Return
- Small Business Administration - Calculate Your Startup Costs
- Federal Reserve - Flow of Funds Data
- U.S. Treasury - Current Interest Rates
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