Startups
Cumulative inflow
Accumulating the inflow shows how the investment is recovered over time, and where the crossover with the outlay sits.
The Formula
cumulative = annual inflow x years
Accumulating the inflow shows how the investment is recovered over time, and where the crossover with the outlay sits.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| Cn | Cumulative inflow | currency | Total cash returned after n years. |
| A | Annual cash inflow | currency | Net cash generated per year. |
| n | Years elapsed | years | Number of full years since the investment. |
What Each Symbol Means
Cncurrency
Cumulative inflow
Total cash returned after n years.
Acurrency
Annual cash inflow
Net cash generated per year.
nyears
Years elapsed
Number of full years since the investment.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate payback period page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Payback Period, filed under Business. Every number the guide produces comes from substituting into this one line.