Payback Calculation

**andrew8008** · 06-08-2007, 04:46 PM

Hi!!!

I need to develop a formula that calculates payback in Yrs where sum of cash flows = 0.

I need it to be dynamic enough where if I moved the cash flows in different periods (Q1 07, Q2 07, etc).

I would appreciate any help!!!

Thanks
Andrew

**starguy** · 06-09-2007, 01:50 AM

Originally Posted by andrew8008

Hi!!!

I need to develop a formula that calculates payback in Yrs where sum of cash flows = 0.

I need it to be dynamic enough where if I moved the cash flows in different periods (Q1 07, Q2 07, etc).

I would appreciate any help!!!

Thanks
Andrew

see the attached (formula in row 6 is helper to calculate payback)

**andrew8008** · 06-11-2007, 08:57 AM

Hey Starguy,

This doesn't get me the answer that I am looking for. I want it to calculate the payback to be 2.9 yrs not 8 as you have showing. My file has Quarters for 2007 & 2008 and then yrs going out. I get 2.9 yrs since the sum of cash flows B5:J5 turns to a positive $5k in 2009 so it is only a partial year in 2009 or 5,000/50,000 = .1 minus 1 = .9.... so Q1 07 - Q4 08 = 2 yrs + .9 yrs (2009) = 2.9yrs payback.

Is there a way to modify your formula.

Thanks in advance for all your help!!!

**starguy** · 06-18-2007, 01:20 AM

Originally Posted by andrew8008

Hey Starguy,

This doesn't get me the answer that I am looking for. I want it to calculate the payback to be 2.9 yrs not 8 as you have showing. My file has Quarters for 2007 & 2008 and then yrs going out. I get 2.9 yrs since the sum of cash flows B5:J5 turns to a positive $5k in 2009 so it is only a partial year in 2009 or 5,000/50,000 = .1 minus 1 = .9.... so Q1 07 - Q4 08 = 2 yrs + .9 yrs (2009) = 2.9yrs payback.

Is there a way to modify your formula.

Thanks in advance for all your help!!!

Hi see the file attached (with a different presentation)