Finance
Find the payback period
=B1/B2How it works in Excel
- B1 is the amount invested.
- B2 is the cash coming in each year.
- This only works if the yearly cash is steady.
- Payback ignores the time value of money, and anything after the payback date.
The idea in general
It answers: "How long until I have my money back?"
What I assumed
- The investment is in B1 and the yearly cash is in B2.
Check the result on your own data before relying on it.