Help with Payback Period formula!

[theconditioner]

Hello,

I am trying to make a payback period formula, but I can't figure out a simple formula to use. Payback period is essentially the time it takes for your total cash flows to equal 0 (assuming that cash flows are evenly distributed through time).

I am trying to avoid making a "cumulative sum" row too.

Basically, what formula should I use in cell B4?

The answer should be 3.2 if I'm not mistaken.

Thanks!

 

[Dave Patton]

Re: How many pay periods left?

How many pay periods left?

We have 26 bi-weekly pay periods in a year, so how to calculate how many left?

=(12-MONTH(A3))*2+1+(DAY(A3)<16); where A3 is =today()

I use this formula, but it’s not correct,
the formula has to change its number after every period end day, which is Saturday.

Hello Joyson
You probably should have posted this as a new question.
What is the date of your last pay period of the year?
The date of the last pay period in B1 and current date in A1

try =ROUNDUP((INT(B1/7)-INT(A1/7)+INT(WEEKDAY(A1)/7))/2,0)

 

[Joyson]

Re: How many pay periods left?

Hello Joyson
You probably should have posted this as a new question.
What is the date of your last pay period of the year?
The date of the last pay period in B1 and current date in A1

try =ROUNDUP((INT(B1/7)-INT(A1/7)+INT(WEEKDAY(A1)/7))/2,0)

Thank you very much Dave,
it works perfectly,
I put the last pay period date in B1 which is Dec.18/10