How it works
Discount each end-of-period inflow, accumulate it against the initial investment, and interpolate within the first period that recovers the remaining balance.
Input definitions
- Cash flows, starting with negative investment
- Plain text; maximum 200,000 characters.
- Discount rate per period (%)
- Enter the value in the labeled unit.
A worked example
- Cash flows, starting with negative investment
- -1000, 600, 600
- Discount rate per period (%)
- 0
Assumptions & limits
Equal periods and nonnegative inflows after the initial outflow. Fractional recovery assumes inflow accumulates uniformly within the recovery period.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-17. Content checked against the stated method and examples. Our verification approach.
Common questions
How does discounted payback differ from ordinary payback?
Discounted payback reduces later inflows by your chosen discount rate. Ordinary payback treats every period’s money at face value. A project may recover its nominal investment while never reaching discounted payback.
Are these investment and borrowing results guaranteed?
No. These are deterministic estimates from the inputs and stated method, not predicted returns or lending offers. Actual fees, tax, timing and contractual terms may differ.
How does the Discounted payback period tool work?
Discount each end-of-period inflow, accumulate it against the initial investment, and interpolate within the first period that recovers the remaining balance.
What are the assumptions and limits of Discounted payback period?
Equal periods and nonnegative inflows after the initial outflow. Fractional recovery assumes inflow accumulates uniformly within the recovery period.