Payback and NFV Calculator

Payback, discounted payback, NPV, and net future value for a cash-flow series.

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Educational estimate only — not investment, lending, or financial advice. Confirm figures with statements or a qualified professional before you act.

About this tool

Enter a series of cash flows and a rate. You get how many periods it takes to recover the initial outlay, how many when future flows are discounted, plus net present value and net future value.

How to use

1
Step 1
Add the cash flows in order, starting with today. Outflows are negative.
2
Step 2
Enter the discount and compounding rate.
3
Step 3
Press Calculate to see payback, discounted payback, NPV and NFV.

How it works

Payback counts the periods until cumulative cash flow turns positive, interpolating inside the period when the money comes back. Discounted payback does the same after discounting flows at your rate, so it is always longer. NFV is the value at the end of the last period, equal to NPV compounded forward. If the outlay is never recovered, the tool says so.

payback = periods before recovery + remaining outlay ÷ cash flow in the recovery period      NFV = NPV × (1 + r)^n

Worked example

A four-period project at 10%

Input
Cash flows −10,000, 3,000, 4,200, 6,800, 4,000; rate 10%
Output
Payback 2.4118; discounted payback 2.7441; NPV $4,039.34; NFV $5,914.00
Walkthrough
After two periods 7,200 is recovered, leaving 2,800 of the 6,800 flow in period 3: 2 + 2,800 ÷ 6,800 = 2.4118. If the flows are −5,000 then 1,000 three times, the outlay is never recovered and the tool reports that.

Limitations

  • Payback ignores cash flows after the recovery point.
  • Assumes equal periods and flows evenly spread within each period.

Questions

How do I calculate payback period?
Add up cash flows until the total turns positive. Interpolate in the last period: 2 + 2,800 ÷ 6,800 = 2.4118.
What is discounted payback?
Payback measured after discounting each flow at your rate, so it accounts for the time value of money. Here it is 2.7441.
What is net future value?
The project's value at the end of its life rather than today. NPV of 4,039.34 grows to 5,914.00 after four periods at 10%.
What if the payback says does not recover?
The cash flows never add up to the initial outlay within the periods you entered.

Features

  • Payback and discounted payback
  • NPV and NFV
  • Runs in your browser

Related resources

Guides and videos from around the web—opens on YouTube or the publisher’s site.

  • Amortization

    Khan Academy

    Principal vs interest breakdown for schedules.

    Watch on YouTube

  • Present value and future value

    Khan Academy

    TVM vocabulary for N/I/Y/PV/PMT/FV solves.

    Watch on YouTube

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