Discounted Payback Period Calculator

Calculate Discounted Payback Period %

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Formula

The formula to calculate the Discounted Payback Period (DPP) is:

\[ DPP = \ln\left(\frac{1}{1 - \left(\frac{Initial\ Invt \times DR}{PCF}\right)}\right) / \ln(1 + DR) \]

Where:

Definition

The Discounted Payback Period is a capital budgeting procedure used to determine the profitability of a project.

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.

Periodic Cash Flow is the net amount of cash and cash-equivalents moving into and out of a business.

How to calculate the Discounted Payback Period

Let's assume the following values:

Using the formula:

\[ DPP = \ln\left(\frac{1}{1 - \left(\frac{2000 \times 12}{170000}\right)}\right) / \ln(1 + 12) \]

Evaluating:

\[ DPP = \ln\left(\frac{1}{1 - \left(\frac{2000 \times 12}{170000}\right)}\right) / \ln(1 + 12) \]

The Discounted Payback Period is 0.0593352125644093.

Discounted Payback Period Conversion Chart

Initial Investment Discount Rate Periodic Cash Flow Discounted Payback Period
1000% 5% 100000% 0.028627332668513
1000% 5% 110000% 0.025963315073164
1000% 5% 120000% 0.023752973069054
1000% 5% 130000% 0.021889496791765
1000% 5% 140000% 0.020297168674400
1000% 5% 150000% 0.018920816246774
1000% 5% 160000% 0.017719285908537
1000% 5% 170000% 0.016661255967880
1000% 5% 180000% 0.015722465794381
1000% 5% 190000% 0.014883832088049
1000% 5% 200000% 0.014130137677016
1000% 6% 100000% 0.031797667404184
1000% 6% 110000% 0.028824283936375
1000% 6% 120000% 0.026359538960446
1000% 6% 130000% 0.024283179196884
1000% 6% 140000% 0.022510095175596
1000% 6% 150000% 0.020978355316186
1000% 6% 160000% 0.019641817911661
1000% 6% 170000% 0.018465399979289
1000% 6% 180000% 0.017421951209895
1000% 6% 190000% 0.016490131657455
1000% 6% 200000% 0.015652936236288
1000% 7% 100000% 0.034899126222231
1000% 7% 110000% 0.031619728780480
1000% 7% 120000% 0.028903877731110
1000% 7% 130000% 0.026617769229738
1000% 7% 140000% 0.024666860481259
1000% 7% 150000% 0.022982451239164
1000% 7% 160000% 0.021513417398237
1000% 7% 170000% 0.020220927302208
1000% 7% 180000% 0.019074956230983
1000% 7% 190000% 0.018051923348969
1000% 7% 200000% 0.017133050835548
1000% 8% 100000% 0.037948605617792
1000% 8% 110000% 0.034364968099750
1000% 8% 120000% 0.031400008992524
1000% 8% 130000% 0.028906196652563
1000% 8% 140000% 0.026779465617606
1000% 8% 150000% 0.024944303399993
1000% 8% 160000% 0.023344584307233
1000% 8% 170000% 0.021937721940247
1000% 8% 180000% 0.020690818110124
1000% 8% 190000% 0.019578055665044
1000% 8% 200000% 0.018578890360741
1000% 9% 100000% 0.040958607678906
1000% 9% 110000% 0.037071311375582
1000% 9% 120000% 0.033858267260967
1000% 9% 130000% 0.031157981990387
1000% 9% 140000% 0.028856740022474
1000% 9% 150000% 0.026872146400301
1000% 9% 160000% 0.025143035362755
1000% 9% 170000% 0.023623045346424
1000% 9% 180000% 0.022276394711152
1000% 9% 190000% 0.021075026083644
1000% 9% 200000% 0.019996628416254
1000% 10% 100000% 0.043938747806475
1000% 10% 110000% 0.039747432210873
1000% 10% 120000% 0.036286562627102
1000% 10% 130000% 0.033380401797167
1000% 10% 140000% 0.030905424850868
1000% 10% 150000% 0.028772262187429
1000% 10% 160000% 0.026914653808986
1000% 10% 170000% 0.025282431015298
1000% 10% 180000% 0.023836910013691
1000% 10% 190000% 0.022547782584007
1000% 10% 200000% 0.021390965222468
1000% 11% 100000% 0.046896657572989
1000% 11% 110000% 0.042400190633646
1000% 11% 120000% 0.038691135766048
1000% 11% 130000% 0.035579186586988
1000% 11% 140000% 0.032930821869954
1000% 11% 150000% 0.030649586362555
1000% 11% 160000% 0.028664058384022
1000% 11% 170000% 0.026920220458075
1000% 11% 180000% 0.025376460710312
1000% 11% 190000% 0.024000203921069
1000% 11% 200000% 0.022765584169217
1000% 12% 100000% 0.049838555735228
1000% 12% 110000% 0.045035153144764
1000% 12% 120000% 0.041077035439834
1000% 12% 130000% 0.037758962261059
1000% 12% 140000% 0.034937203898004
1000% 12% 150000% 0.032508091708123
1000% 12% 160000% 0.030394963254506
1000% 12% 170000% 0.028539902283195
1000% 12% 180000% 0.026898336720079
1000% 12% 190000% 0.025435403501677
1000% 12% 200000% 0.024123440697996
1000% 13% 100000% 0.052769625642733
1000% 13% 110000% 0.047656936390756
1000% 13% 120000% 0.043448434042491
1000% 13% 130000% 0.039923541817558
1000% 13% 140000% 0.036928086046892
1000% 13% 150000% 0.034351041658253
1000% 13% 160000% 0.032110415906518
1000% 13% 170000% 0.030144336316313
1000% 13% 180000% 0.028405233047508
1000% 13% 190000% 0.026855930256350
1000% 13% 200000% 0.025466953271246
1000% 14% 100000% 0.055694273936723
1000% 14% 110000% 0.050269442667338
1000% 14% 120000% 0.045808843801894
1000% 14% 130000% 0.042076125214681
1000% 14% 140000% 0.038906411563177
1000% 14% 150000% 0.036181163968203
1000% 14% 160000% 0.033812960146832
1000% 14% 170000% 0.031735907172528
1000% 14% 180000% 0.029899394959780
1000% 14% 190000% 0.028263906293606
1000% 14% 200000% 0.026798134246292
1000% 15% 100000% 0.058616313409256
1000% 15% 110000% 0.052876026298428
1000% 15% 120000% 0.048161269485599
1000% 15% 130000% 0.044219440521020
1000% 15% 140000% 0.040874683070720
1000% 15% 150000% 0.038000773361263
1000% 15% 160000% 0.035504751218107
1000% 15% 170000% 0.033316632715866
1000% 15% 180000% 0.031382720520965
1000% 15% 190000% 0.029661124124655
1000% 15% 200000% 0.028118682314603
1500% 5% 100000% 0.043511164756562
1500% 5% 110000% 0.039412414683304
1500% 5% 120000% 0.036019634468781
1500% 5% 130000% 0.033164842430777
1500% 5% 140000% 0.030729446741392
1500% 5% 150000% 0.028627332668513
1500% 5% 160000% 0.026794455400336
1500% 5% 170000% 0.025182194404648
1500% 5% 180000% 0.023752973069054
1500% 5% 190000% 0.022477291081537
1500% 5% 200000% 0.021331665034629
1500% 6% 100000% 0.048466101848036
1500% 6% 110000% 0.043866284880932
1500% 6% 120000% 0.040064306929875
1500% 6% 130000% 0.036869073782092
1500% 6% 140000% 0.034146026444443
1500% 6% 150000% 0.031797667404184
1500% 6% 160000% 0.029751619542664
1500% 6% 170000% 0.027953023469355
1500% 6% 180000% 0.026359538960446
1500% 6% 190000% 0.024937965875875
1500% 6% 200000% 0.023661903672048
1500% 7% 100000% 0.053346804170156
1500% 7% 110000% 0.048245030993670
1500% 7% 120000% 0.044034512002448
1500% 7% 130000% 0.040500335015902
1500% 7% 140000% 0.037491576419471
1500% 7% 150000% 0.034899126222231
1500% 7% 160000% 0.032642140229752
1500% 7% 170000% 0.030659440790944
1500% 7% 180000% 0.028903877731110
1500% 7% 190000% 0.027338524835966
1500% 7% 200000% 0.025934050534544
1500% 8% 100000% 0.058179474610130
1500% 8% 110000% 0.052572180519610
1500% 8% 120000% 0.047951637144692
1500% 8% 130000% 0.044078255354003
1500% 8% 140000% 0.040784251011031
1500% 8% 150000% 0.037948605617792
1500% 8% 160000% 0.035481826607013
1500% 8% 170000% 0.033316304932308
1500% 8% 180000% 0.031400008992524
1500% 8% 190000% 0.029692241085112
1500% 8% 200000% 0.028160709813788
1500% 9% 100000% 0.062983892535186
1500% 9% 110000% 0.056865371814433
1500% 9% 120000% 0.051831638272868
1500% 9% 130000% 0.047617426944799
1500% 9% 140000% 0.044037510166401
1500% 9% 150000% 0.040958607678906
1500% 9% 160000% 0.038282357965797
1500% 9% 170000% 0.035934579495807
1500% 9% 180000% 0.033858267260967
1500% 9% 190000% 0.032008891228988
1500% 9% 200000% 0.030351159519275
1500% 10% 100000% 0.067775657820166
1500% 10% 110000% 0.061138397433341
1500% 10% 120000% 0.055686915996415
1500% 10% 130000% 0.051129139576331
1500% 10% 140000% 0.047261732650545
1500% 10% 150000% 0.043938747806475
1500% 10% 160000% 0.041052698977288
1500% 10% 170000% 0.038522666598035
1500% 10% 180000% 0.036286562627102
1500% 10% 190000% 0.034295950773947
1500% 10% 200000% 0.032512488078234
1500% 11% 100000% 0.072567536549780
1500% 11% 110000% 0.065402428502351
1500% 11% 120000% 0.059527439426846
1500% 11% 130000% 0.054622419536647
1500% 11% 140000% 0.050465182083187
1500% 11% 150000% 0.046896657572989
1500% 11% 160000% 0.043799947190546
1500% 11% 170000% 0.041087205441589
1500% 11% 180000% 0.038691135766048
1500% 11% 190000% 0.036559310097755
1500% 11% 200000% 0.034650275116274
1500% 12% 100000% 0.077370314601548
1500% 12% 110000% 0.069666790193559
1500% 12% 120000% 0.063361457420203
1500% 12% 130000% 0.058104686834045
1500% 12% 140000% 0.053654617965732
1500% 12% 150000% 0.049838555735228
1500% 12% 160000% 0.046529869014911
1500% 12% 170000% 0.043633577356376
1500% 12% 180000% 0.041077035439834
1500% 12% 190000% 0.038803727277304
1500% 12% 200000% 0.036769022045947
1500% 13% 100000% 0.082193364702387
1500% 13% 110000% 0.073939475621389
1500% 13% 120000% 0.067195969292857
1500% 13% 130000% 0.061582189850142
1500% 13% 140000% 0.056835699624783
1500% 13% 150000% 0.052769625642733
1500% 13% 160000% 0.049247253934788
1500% 13% 170000% 0.046166239548534
1500% 13% 180000% 0.043448434042491
1500% 13% 190000% 0.041033127329864
1500% 13% 200000% 0.038872436617380
1500% 14% 100000% 0.087045038317653
1500% 14% 110000% 0.078227499613579
1500% 14% 120000% 0.071037048193995
1500% 14% 130000% 0.065060303592130
1500% 14% 140000% 0.060013263207465
1500% 14% 150000% 0.055694273936723
1500% 14% 160000% 0.051956157255087
1500% 14% 170000% 0.048688953790863
1500% 14% 180000% 0.045808843801894
1500% 14% 190000% 0.043250807237525
1500% 14% 200000% 0.040963627875928
1500% 15% 100000% 0.091932946125122
1500% 15% 110000% 0.082537150423083
1500% 15% 120000% 0.074890070464727
1500% 15% 130000% 0.068543740859749
1500% 15% 140000% 0.063191517594992
1500% 15% 150000% 0.058616313409256
1500% 15% 160000% 0.054660071618835
1500% 15% 170000% 0.051204947972125
1500% 15% 180000% 0.048161269485599
1500% 15% 190000% 0.045459580746453
1500% 15% 200000% 0.043045243845670
2000% 5% 100000% 0.058802823407552
2000% 5% 110000% 0.053193624167304
2000% 5% 120000% 0.048561974128769
2000% 5% 130000% 0.044672685730536
2000% 5% 140000% 0.041360446771156
2000% 5% 150000% 0.038505654733152
2000% 5% 160000% 0.036019634468781
2000% 5% 170000% 0.033835245666403
2000% 5% 180000% 0.031900718160889
2000% 5% 190000% 0.030175490739039
2000% 5% 200000% 0.028627332668513
2000% 6% 100000% 0.065693357718466
2000% 6% 110000% 0.059361881214260
2000% 6% 120000% 0.054144594347779
2000% 6% 130000% 0.049770965035018
2000% 6% 140000% 0.046051539806805
2000% 6% 150000% 0.042849670617901
2000% 6% 160000% 0.040064306929875
2000% 6% 170000% 0.037619107983394
2000% 6% 180000% 0.035455322292474
2000% 6% 190000% 0.033526996043509
2000% 6% 200000% 0.031797667404184
2000% 7% 100000% 0.072530478357542
2000% 7% 110000% 0.065465737601168
2000% 7% 120000% 0.059656713681773
2000% 7% 130000% 0.054795605966961
2000% 7% 140000% 0.050667697815017
2000% 7% 150000% 0.047118616415181
2000% 7% 160000% 0.044034512002448
2000% 7% 170000% 0.041329572425151
2000% 7% 180000% 0.038937888327583
2000% 7% 190000% 0.036807996564550
2000% 7% 200000% 0.034899126222231
2000% 8% 100000% 0.079351646137216
2000% 8% 110000% 0.071538241991164
2000% 8% 120000% 0.065128000622567
2000% 8% 130000% 0.059773590472172
2000% 8% 140000% 0.055233706311167
2000% 8% 150000% 0.051335441678925
2000% 8% 160000% 0.047951637144692
2000% 8% 170000% 0.044986678037466
2000% 8% 180000% 0.042367277348986
2000% 8% 190000% 0.040036313926820
2000% 8% 200000% 0.037948605617792
2000% 9% 100000% 0.086186147616283
2000% 9% 110000% 0.077604857812670
2000% 9% 120000% 0.070581074285707
2000% 9% 130000% 0.064725329636655
2000% 9% 140000% 0.059768205003490
2000% 9% 150000% 0.055517327849831
2000% 9% 160000% 0.051831638272868
2000% 9% 170000% 0.048605333433501
2000% 9% 180000% 0.045757490560675
2000% 9% 190000% 0.043225154045280
2000% 9% 200000% 0.040958607678906
2000% 10% 100000% 0.093058088835464
2000% 10% 110000% 0.083686180017348
2000% 10% 120000% 0.076033994837974
2000% 10% 130000% 0.069666964424269
2000% 10% 140000% 0.064285826648035
2000% 10% 150000% 0.059677687038297
2000% 10% 160000% 0.055686915996415
2000% 10% 170000% 0.052197084824284
2000% 10% 180000% 0.049119341028989
2000% 10% 190000% 0.046384692597698
2000% 10% 200000% 0.043938747806475
2000% 11% 100000% 0.099988206526671
2000% 11% 110000% 0.089799571075737
2000% 11% 120000% 0.081501759484105
2000% 11% 130000% 0.074611745816359
2000% 11% 140000% 0.068798479072936
2000% 11% 150000% 0.063827359546955
2000% 11% 160000% 0.059527439426846
2000% 11% 170000% 0.055771174864042
2000% 11% 180000% 0.052461454789203
2000% 11% 190000% 0.049523024443484
2000% 11% 200000% 0.046896657572989
2000% 12% 100000% 0.106995034776579
2000% 12% 110000% 0.095960206318654
2000% 12% 120000% 0.086997254220664
2000% 12% 130000% 0.079570910727650
2000% 12% 140000% 0.073316157668333
2000% 12% 150000% 0.067975372159913
2000% 12% 160000% 0.063361457420203
2000% 12% 170000% 0.059335212564409
2000% 12% 180000% 0.055790904106698
2000% 12% 190000% 0.052646764120749
2000% 12% 200000% 0.049838555735228
2000% 13% 100000% 0.114095699780732
2000% 13% 110000% 0.102181776774215
2000% 13% 120000% 0.092531889236238
2000% 13% 130000% 0.084554264437575
2000% 13% 140000% 0.077847484368504
2000% 13% 150000% 0.072129440446438
2000% 13% 160000% 0.067195969292857
2000% 13% 170000% 0.062895616404991
2000% 13% 180000% 0.059113626189896
2000% 13% 190000% 0.055761442801904
2000% 13% 200000% 0.052769625642733
2000% 14% 100000% 0.121306490861333
2000% 14% 110000% 0.108476984070900
2000% 14% 120000% 0.098116041432637
2000% 14% 130000% 0.089570583688805
2000% 14% 140000% 0.082400079298156
2000% 14% 150000% 0.076296314329367
2000% 14% 160000% 0.071037048193995
2000% 14% 170000% 0.066457918459470
2000% 14% 180000% 0.062434710396106
2000% 14% 190000% 0.058871780465227
2000% 14% 200000% 0.055694273936723
2000% 15% 100000% 0.128643293207440
2000% 15% 110000% 0.114857904659324
2000% 15% 120000% 0.103759374819711
2000% 15% 130000% 0.094627905813433
2000% 15% 140000% 0.086980825855077
2000% 15% 150000% 0.080482023721841
2000% 15% 160000% 0.074890070464727
2000% 15% 170000% 0.070026979798184
2000% 15% 180000% 0.065758601458449
2000% 15% 190000% 0.061981878360896
2000% 15% 200000% 0.058616313409256
2500% 5% 100000% 0.074525289201933
2500% 5% 110000% 0.067323761844320
2500% 5% 120000% 0.061392668549267
2500% 5% 130000% 0.056422817128978
2500% 5% 140000% 0.052197886835289
2500% 5% 150000% 0.048561974128769
2500% 5% 160000% 0.045399865802857
2500% 5% 170000% 0.042624571041044
2500% 5% 180000% 0.040169174970845
2500% 5% 190000% 0.037981361010658
2500% 5% 200000% 0.036019634468781
2500% 6% 100000% 0.083518208472613
2500% 6% 110000% 0.075339282372851
2500% 6% 120000% 0.068621561324067
2500% 6% 130000% 0.063005130093932
2500% 6% 140000% 0.058239423522212
2500% 6% 150000% 0.054144594347779
2500% 6% 160000% 0.050588190241488
2500% 6% 170000% 0.047470496094519
2500% 6% 180000% 0.044715002402280
2500% 6% 190000% 0.042262022363621
2500% 6% 200000% 0.040064306929875
2500% 7% 100000% 0.092511325176303
2500% 7% 110000% 0.083326084336116
2500% 7% 120000% 0.075803498701024
2500% 7% 130000% 0.069528873937139
2500% 7% 140000% 0.064215025980799
2500% 7% 150000% 0.059656713681773
2500% 7% 160000% 0.055703328611753
2500% 7% 170000% 0.052241834562484
2500% 7% 180000% 0.049185729471286
2500% 7% 190000% 0.046467685555139
2500% 7% 200000% 0.044034512002448
2500% 8% 100000% 0.101557006787506
2500% 8% 110000% 0.091329169322069
2500% 8% 120000% 0.082978116426765
2500% 8% 130000% 0.076029590414327
2500% 8% 140000% 0.070156997794982
2500% 8% 150000% 0.065128000622567
2500% 8% 160000% 0.060772755776475
2500% 8% 170000% 0.056964201222319
2500% 8% 180000% 0.053605369642814
2500% 8% 190000% 0.050620968041905
2500% 8% 200000% 0.047951637144692
2500% 9% 100000% 0.110698297493690
2500% 9% 110000% 0.099384632135912
2500% 9% 120000% 0.090176630349088
2500% 9% 130000% 0.082534888055213
2500% 9% 140000% 0.076090169070483
2500% 9% 150000% 0.070581074285707
2500% 9% 160000% 0.065817284489643
2500% 9% 170000% 0.061656901064092
2500% 9% 180000% 0.057991946977687
2500% 9% 190000% 0.054738789579965
2500% 9% 200000% 0.051831638272868
2500% 10% 100000% 0.119972742644449
2500% 10% 110000% 0.107523090031038
2500% 10% 120000% 0.097424960060443
2500% 10% 130000% 0.089067317793581
2500% 10% 140000% 0.082034564427199
2500% 10% 150000% 0.076033994837974
2500% 10% 160000% 0.070853401615461
2500% 10% 170000% 0.066335129992586
2500% 10% 180000% 0.062359576611725
2500% 10% 190000% 0.058834345211109
2500% 10% 200000% 0.055686915996415
2500% 11% 100000% 0.129414770633295
2500% 11% 110000% 0.115771782604519
2500% 11% 120000% 0.104745624261528
2500% 11% 130000% 0.095646108837689
2500% 11% 140000% 0.088007008626858
2500% 11% 150000% 0.081501759484105
2500% 11% 160000% 0.075894669855562
2500% 11% 170000% 0.071011294269992
2500% 11% 180000% 0.066719711525940
2500% 11% 190000% 0.062918287253983
2500% 11% 200000% 0.059527439426846
2500% 12% 100000% 0.139057304543324
2500% 12% 110000% 0.124155952706099
2500% 12% 120000% 0.112158967823245
2500% 12% 130000% 0.102288282497377
2500% 12% 140000% 0.094022151398560
2500% 12% 150000% 0.086997254220664
2500% 12% 160000% 0.080952617709279
2500% 12% 170000% 0.075695847123122
2500% 12% 180000% 0.071081932383411
2500% 12% 190000% 0.066999473664749
2500% 12% 200000% 0.063361457420203
2500% 13% 100000% 0.148932948026145
2500% 13% 110000% 0.132699818796346
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