ClueLuma

Simple payback (SPP) calculator

Divide installed investment by yearly net savings for an undiscounted recovery screen.

SPP=PA\mathrm{SPP} = \frac{P}{A}

Calculator

Enter the values you know and leave one box empty. Calculate finds the empty one, the result or any input.

$
$/year
years

Worked example

Given

  • PP = 45,000 $
  • AA = 12,000 $/year
SPP=45,00012,000=3.75\mathrm{SPP} = \frac{45{,}000}{12{,}000} = 3.75

Symbols and units

SymbolMeaningUnit
SPP\mathrm{SPP}simple payback periodyears
PPinitial investment$
AAuniform net annual savings$/year

Related calculators

Results are estimates for study and screening. Check the inputs, units and assumptions before you use them for design, billing or contract decisions.