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SMB Tools / ROI & payback

Is it worth the money?

See how long an investment takes to pay for itself and the return it earns over time, for a piece of equipment, a buildout, or a whole acquisition.

The investment

Initial investment
$
Net annual return
$
Time horizon
years
Resale / salvage value (optional)
$
Payback period
2 yr 9 mo
$50,000 returning $18,000 a year
Cumulative cash flow
pays back
Total return (5 yr)
$90,000
Net profit
$40,000
ROI (total)
80.0%
Average annual ROI
16.0%

A planning estimate using one steady annual return. It ignores taxes, financing, and the time value of money. Be conservative with the annual figure.