Payback Period Template

Payback Period Template

This payback period template will help you visualize and determine the period of time a company takes to recoup its investment.

Here is a preview of the payback period template:

Payback Period Template Screenshot

 

Download the Free Template

Enter your name and email in the form below and download the free template now!

Payback Period Template

Download the free Excel template now to advance your finance knowledge!

 

The Payback Period shows how long it takes for a business to recoup its investment. This type of analysis allows firms to compare alternative investment opportunities and decide on a project that returns its investment in the shortest time, if that criteria is important to them.

 

Payback Period Formula

Payback Period = (Initial Investment − Opening Cumulative Cash Flow) / (Closing Cumulative Cash Flow − Opening Cumulative Cash Flow)

 

In essence, the payback period is used very similarly to a Breakeven Analysis but instead of the number of units to cover fixed costs, it considers the amount of time required to return the investment.

 

More Free Templates

For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation and Word document templates.

Financial Analyst Certification

Become a certified Financial Modeling and Valuation Analyst (FMVA)â„¢ by completing CFI’s online financial modeling classes and training program!