HisabCalc › Banking & money

Payback Period Calculator

Shows how long an investment takes to return its net cost from the annual cash it brings in.

Enter your numbers

Initial investment cost (Taka)

Example: 500000

Yearly net cash inflow (Taka)

Example: 120000

Residual or resale value (Taka)

Example: 0

Result

Currency

Figures are computed on your device; nothing is sent anywhere.

Formula

netCost = initialCost - residualValue; paybackYears = netCost / annualCashInflow; paybackMonths = paybackYears * 12

How the calculation works

Enter the full initial cost of the investment in Taka, including purchase, installation and any setup charges.

Enter the net cash the investment brings in each year, which is the extra income minus the extra running costs it causes.

The tool subtracts any residual value from the cost to get the net amount to recover, then divides it by the yearly cash inflow to give the payback in years and months.

Common mistakes

Using gross income instead of net cash inflow, which makes the payback look faster because the running costs are ignored.
Forgetting the residual or resale value, when subtracting it gives a truer picture of how much money you actually need to recover.

When to use it

Use it to judge a machine, vehicle or shop fit-out before you commit, because a shorter payback means your money is at risk for less time.
Use it to rank several proposals, since two options with the same profit can have very different payback periods.

Worked example

An investment of 500000 Taka with 120000 Taka of yearly cash inflow and no residual value pays back in about 4.17 years, which is 50 months.

Payback (years) ৳4.17

Payback (months) 50.00

Common questions

Why does the payback ignore interest over time?

Payback is a simple measure that counts only how fast the cost returns, so it does not discount future cash, and for that reason it is best used alongside a net present value check.

Last updated: 2026-10-03