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Payback Period Calculator
This payback period calculator estimates how many months or years it takes for an investment to repay itself based on recurring monthly cash flow. It is useful for evaluating business projects, equipment, software, and small investments.
Frequently Asked Questions
It is the amount of time required for an investment to generate enough cash flow to recover its initial cost.
How this calculator works
Formula explanation
**Formula:** Payback Period = Initial Investment / Monthly Cash Flow
Worked example
**Example:** Investment = 12,000 and monthly cash flow = 1,500. Payback period = 8 months.
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