Payback period calculation example

Tutorial URL: http://techtites.com/2013/04/04/calculating-payback-period-in-excel/

2013 2014 2015 2016 2017 2018

Initial investment 1,000

Cash flows (1,000) 200 210 221 232 243

Cumulative cash flows (1,000) (800) (590) (370) (138) 105

Fraction calculations n/m n/m n/m n/m 0.57
=IF(D10<0,"n/m",ABS(C10)/D8)

Payback period 4.57 =COUNTIF(D10:J10,"<0")+INDEX(D11:J11,,COUNTIF(D10:J10,"<0")+1)

Breaking it down >

The Integer 4.00 =COUNTIF(D10:J10,"<0")
The Fraction 0.57 =INDEX(D11:J11,,COUNTIF(D10:J10,"<0")+1)

Bonus: Payback period calculations in just one cell

Payback period 4.57
=COUNTIF(D10:J10,"<0")+ABS(INDEX(D10:J10,,COUNTIF(D10:J10,"<0")))
+ABS(INDEX(D10:J10,,COUNTIF(D10:J10,"<0")))/INDEX(D8:J8,,COUNTIF(D10:J10,"<0")+1)
 2019 2020

255 268

360 628
0.41 1.34

UNTIF(D10:J10,"<0")+1)

,COUNTIF(D10:J10,"<0")+1)