How to use this tool
Enter the initial investment and annual net cash flow and the result appears straight away. Everything runs in your browser, so nothing you type is uploaded.
Formula
Simple payback years = initial investment ÷ annual net cash flow.
Example
An investment of 12,000 with annual net cash flow of 4,000 has a simple payback of 3 years.
Prepare your inputs
Use an initial outlay and a positive, recurring annual net cash inflow. Enter cash flow rather than accounting profit.
Understand the result
Three years means the assumed annual inflows recover the outlay in three years. Discounting and later changes in cash flows are excluded.
About this version
This page uses a shared calculation method. Industry and country labels provide a browsing context; they do not change the formula or imply specialist or local regulatory validation. Currency labels do not perform currency conversion.
Limitations and assumptions
Simple payback ignores discounting, cash-flow changes after the first year and residual value. Detailed content, accessibility and edge-case review remains ongoing.