How do I calculate payback period?

Payback (months) = Total Project Cost ÷ Monthly Benefit or Savings.

What is a good payback period?

Under 12-18 months is often considered attractive for internal projects, but targets vary by org and risk.

Payback Period Calculator

This Payback Period Calculator shows how long it will take for a project to recover its initial cost. Enter total project cost and expected recurring monthly savings or revenue.

Payback Calculator

Total Project Cost ($) Monthly Benefit / Savings ($ per month)

How payback period works

Payback Period (months) = Total Cost ÷ Monthly Benefit. A shorter payback period means you recover your investment faster.

Why do executives care?

Payback period is a fast way to evaluate how quickly a project becomes cash-positive.