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Payback Period Calculator

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Input Parameters

Unit System

Imperial (°F, BTU, ft)SI (°C, kW, m)

Initial Cost ($)

Annual Savings ($)

Results

Payback Analysis

5

Payback Period years

60

Payback Months months

20

ROI %

Financial Breakdown

Payback Period5 years(50%)

ROI20 %(20%)

Investment Analysis

Calculation Steps

1

Calculate Payback Period

Formula:

Payback Period = \frac{Initial Cost}{Annual Savings}

Calculation:

Payback Period = \frac{5000}{1000}

Result:

5.00 \text{ years}

2

Convert to Months

Formula:

Payback Months = Payback Period \times 12

Calculation:

Payback Months = 5.00 \times 12

Result:

60.0 \text{ months}

3

Calculate Return on Investment (ROI)

Formula:

ROI = \frac{Annual Savings}{Initial Cost} \times 100\%

Calculation:

ROI = \frac{1000}{5000} \times 100\%

Result:

20.00 \text{ %}