Discounted Payback Period Calculator

Category	Financial ↺
Financial	Investment ↺
Investment

✖The initial investment is the amount required to start a business or a project.ⓘ Initial Investment [Initial Invt]			+10% -10%
✖Discount Rate is the interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve Bank’s discount window.ⓘ Discount Rate [r]			+10% -10%
✖Periodic Cash Flow is the net amount of cash and cash-equivalents moving into and out of a business.ⓘ Periodic Cash Flow [PCF]			+10% -10%

✖Discounted Payback Period is a capital budgeting procedure used to determine the profitability of a project.ⓘ Discounted Payback Period [DPP]

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⎙ 4 Other formulas that you can solve using the same Inputs

Net Present Value (NPV) for even cash flow

Net Present Value (NPV)=Expected Cash Flow*((1-(1+Rate of Return)^-Number of Periods)/Rate of Return)-Initial Investment GO

Profitability Index

Profitability Index (PI)=(Net Present Value (NPV)+Initial Investment)/Initial Investment GO

PV of Perpetuity

PV of Perpetuity=Dividend/Discount Rate GO

Preferred Stock

Preferred Stock=Dividend/Discount Rate GO

How to Calculate Discounted Payback Period ?

Discounted Payback Period calculator uses Discounted Payback Period=ln(1/(1-((Initial Investment*Discount Rate)/Periodic Cash Flow)))/ln(1+Discount Rate) to calculate the Discounted Payback Period, Discounted Payback Period is a capital budgeting procedure used to determine the profitability of a project. Discounted Payback Period and is denoted by DPP symbol.

How to calculate Discounted Payback Period using this online calculator? To use this online calculator for Discounted Payback Period , enter Initial Investment (Initial Invt), Discount Rate (r) and Periodic Cash Flow (PCF) and hit the calculate button. Here is how the Discounted Payback Period calculation can be explained with given input values -> 0.059335 = ln(1/(1-((2000*12)/170000)))/ln(1+12).

FAQ

What is Discounted Payback Period ?

Discounted Payback Period is a capital budgeting procedure used to determine the profitability of a project and is represented as DPP=ln(1/(1-((Initial Invt*r)/PCF)))/ln(1+r) or Discounted Payback Period=ln(1/(1-((Initial Investment*Discount Rate)/Periodic Cash Flow)))/ln(1+Discount Rate). The initial investment is the amount required to start a business or a project, Discount Rate is the interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve Bank’s discount window and Periodic Cash Flow is the net amount of cash and cash-equivalents moving into and out of a business.

How to calculate Discounted Payback Period ?

Discounted Payback Period is a capital budgeting procedure used to determine the profitability of a project is calculated using Discounted Payback Period=ln(1/(1-((Initial Investment*Discount Rate)/Periodic Cash Flow)))/ln(1+Discount Rate). To calculate Discounted Payback Period , you need Initial Investment (Initial Invt), Discount Rate (r) and Periodic Cash Flow (PCF). With our tool, you need to enter the respective value for Initial Investment, Discount Rate and Periodic Cash Flow and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

Discounted Payback Period Calculator

< ⎙ 4 Other formulas that you can solve using the same Inputs

Discounted Payback Period Formula

How to Calculate Discounted Payback Period ?

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