Use our free payback period calculator template and lessen your efforts when calculating payback period for personal or professional purpose. Payback period is the length of time required to recover the cost of an investment or amount of loan. The payback period is generally expressed in years and fractions of years for various situations and transactions. We can also say that payback period is the period of time in which the initial cash outflow of an investment is expected to be recovered from the particular project or any other investment. Calculating payback period is one of the simplest investment appraisal techniques to get maximum return on investment. The question that always stays behind in investors’ minds is how long this investment will take to recover the initial outlay and payback period calculator is something excellent that helps you a lot to answer the question in detailed manner.
About Payback Period Calculator Template:
When it comes to calculate the payback period, it generally requires knowing the total cost of the investment and the periodic cash flows from it. As it is mentioned in recent lines that simple payback period is calculated by dividing the project’s initial cost by the annual expected cash flows. However, in various complicated cases involving disposal and replacement of equipments, the amount received from the disposed item is subtracted from the new equipment’s cost and the difference of amounts will be used in payback period calculation to get accurate figure or value. A lot of helping tools and techniques are obtainable on web that can be used to calculate payback period quickly in few minutes. Our payback period calculator template is also available here for free and you can use it to make your own payback period calculator that can be used for later times. You must edit the template in MS excel to get better outcomes.
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