This page covers Payback period calculator and ROI calculator with example.
It is the ratio of total investment to annual cash inflow. Payback period is the number of days/months/years required to recover the total cash invested in a project or business. Payback period does not consider cash flows earned after the payback period.
ROI is the ratio of Net Present Value(NPV) to the total Investment made. In otherwords, ROI is the ratio ofnet gains to Investments.