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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.

SymbolMeaning
CnCumulative inflow
AAnnual cash inflow
nYears elapsed

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.