Calculation

Investment Payback

Created on · investment-payback

Compares an investment against annual savings and recurring additional costs.

Investment

Residual Value

Savings per Year

Additional Annual Costs

Analysis Period

Discount Rate

How to use the result

Enter actual operating values. The calculation considers only the entered costs and quantities.

net present value = −investment + Σ cash flow_t / (1+i)^t + residual value / (1+i)^N

Sources: Managerial cost and performance accounting; formulas are shown transparently.