MarginWorkshopFinancing Payback Period
Calculate how long a financed equipment or vehicle purchase pays back, on your cash down payment and on the full price.
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Next Decision
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Methodology
Formula: Net annual cash flow = annual value generated - annual financing cost. Cash payback = down payment / net annual cash flow. Full-price payback = total purchase price / annual value generated (no financing cost).
Assumption: Both are simple, undiscounted payback periods, not a net-present-value calculation.
Limitation: When financing cost meets or exceeds the value generated, the purchase produces no positive cash flow to pay it back; the calculator returns a clear message instead of a number.