Multi-Project Payback Period Comparator

Two capital projects, two different price tags, two different annual returns. Overlaying their cumulative cash flow is the fastest way to see which one actually pays for itself first.

Reading This Tool

How To Use This Comparator

Enter the initial investment and expected annual cash flow for two competing projects.

Both cumulative cash flow lines are plotted together. Where each crosses zero is its payback period, and where the lines cross each other shows when the bigger project actually overtakes the smaller one.

Your Inputs

Project A: Initial Investment $200,000

Project A: Annual Cash Flow $60,000

Project B: Initial Investment $350,000

Project B: Annual Cash Flow $90,000

Years To Project 8

This model assumes constant annual cash flow with no growth. Payback period alone doesn't account for what happens after payback, a project with a longer payback but much higher terminal cash flow can still be the better choice.

Payback Comparison

Project A Payback

Project B Payback

Cumulative Advantage At End Of Projection

Cumulative Cash Flow: Project A Vs. Project B

Payback period ignores the time value of money and any cash flow beyond the projection window. Pair this with an NPV or IRR comparison before making a final capital allocation decision.

Want the discounted version of this comparison?

Open The NPV/IRR Tool →