Periodo di Ritorno

How to use it

1. {'step': 1, 'description': 'Divide investment by annual cash flow', 'calculation': '$75,000 ÷ $18,500 = 4.05 years'}
2. {'step': 2, 'description': 'Interpret the result', 'calculation': 'Investment recovers in approximately 4 years and 2 weeks'}

Common mistakes

• ⚠️ Not considering time value of money (use discounted payback instead)
• ⚠️ Ignoring cash flows that occur after payback period
• ⚠️ Using accounting profit instead of attuale cash flows

Worked example

Calculating payback period for $75,000 investment generating $18,500 annual cash flow.

The payback of {payback} years shows how long until the initial investment is recovered.

Input guide