ROI & Payback Calculator
Enter what you put in and the profit it earns each period to see how long it takes to break even and your annual return on investment.
These results are estimates for reference only — not investment, tax or financial advice. They use simple payback (initial cost ÷ net profit) and a simple annual return, leaving out taxes, inflation, financing costs and the timing of cash flows.
Every calculation runs in your browser — the amounts you enter never leave your device.
FAQ
How is the payback period calculated?
It divides the initial investment by your net profit per period, then converts that to years — so 10,000 earning 600 a month pays back in about 16.7 months, or 1.39 years. This is simple payback: it ignores the time value of money, so a discounted payback would be a little longer.
How is the annual ROI worked out?
It annualises your profit — the per-period amount times the number of periods in a year — and divides by the initial investment. So 600 a month is 7,200 a year, a 72% annual return on 10,000. It is a simple, non-compounded rate and assumes the profit keeps coming, so it can overstate the return if the income stops after the payback point.
What if the net profit is zero or negative?
Then the profit never adds up to the initial cost, so the payback period shows as “Never”. A negative net profit also gives a negative ROI, which is a valid result — a sign the investment is losing money rather than earning it.
What does the calculation assume?
It assumes the same net profit every period and that your capital stays intact, and it leaves out taxes, fees, reinvestment and any eventual return of principal. Real income usually varies, so treat the payback and ROI as a baseline for comparing options rather than a full financial projection.