How long until you get your investment back?
Estimate how many years you need to get back the money you invested, based on the cash the business can generate each year.
Enter the figures for the calculation
The calculation assumes the same income and outgoings every year and a purchase without loans. It does not take into account the resale value or the changing value of money over time. The estimated payback period is not guaranteed and does not measure the annual return.
How it works
We divide the initial investment by the cash left each year, after subtracting your pay and the planned investments. We then compare two scenarios: one with less cash and one with more, by the percentage you chose. The other outgoings stay the same. If no cash is left, the investment is not paid back under these assumptions.
A real example
You invest €100,000. Each year the business generates €50,000 after operating costs and taxes. Taking away €25,000 for your work and €5,000 for new investments leaves €20,000 a year. Under these conditions you get the initial sum back in 5 years.
Frequently asked questions
Can I enter EBITDA as cash?
No: EBITDA and cash are not the same. Take into account taxes, actual receipts and payments, working capital and the outgoings listed in the tool.
What does “No payback” mean?
In that scenario the cash left is zero or negative. Under these assumptions the money is not recovered, rather than being recovered in zero years.