Formula to calculate payback periods

ClaireCat

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Mar 16, 2011
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6
Hi all,

I am trying to enter a formula to calculate how many periods it will take to payback. The formula I have works well unless someone enters additional capex at a later date - then it all goes to pot.

The original calculation is on sheet 2 - but I'm playing around with sheet 1 to try and get a formula that works.

If anyone could help, or has any suggestions, they would be very much appreciated.

https://drive.google.com/file/d/1lambPuZxLW_WneONt3EO4yPgz38p-Sfz/view?usp=sharing
 

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AlanY

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so, are you expecting the Payback period on Sheet 1 to be Period 7?
 

ClaireCat

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so, are you expecting the Payback period on Sheet 1 to be Period 7?

Yes. my old formula (sheet 2) works fine, but if I put -50 in capex in period 7, I want a formula that will manage to cope with that and still work it out.
 

AlanY

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ok, try this

<b></b><table cellpadding="2.5px" rules="all" style=";background-color: rgb(255,255,255);border: 1px solid;border-collapse: collapse; border-color: rgb(187,187,187)"><colgroup><col width="25px" style="background-color: rgb(218,231,245)" /><col /><col /><col /><col /><col /><col /><col /><col /><col /><col /></colgroup><thead><tr style=" background-color: rgb(218,231,245);text-align: center;color: rgb(22,17,32)"><th></th><th>E</th><th>F</th><th>G</th><th>H</th><th>I</th><th>J</th><th>K</th><th>L</th><th>M</th><th>N</th></tr></thead><tbody><tr ><td style="color: rgb(22,17,32);text-align: center;">7</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;">Period 1</td><td style="text-align: right;;">Period 2</td><td style="text-align: right;;">Period 3</td><td style="text-align: right;;">Period 4</td><td style="text-align: right;;">Period 5</td><td style="text-align: right;;">Period 6</td><td style="text-align: right;;">Period 7</td><td style="text-align: right;;">Period 8</td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">8</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">9</td><td style=";">P&L</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;">50</td><td style="text-align: right;;">100</td><td style="text-align: right;;">100</td><td style="text-align: right;;">100</td><td style="text-align: right;;">100</td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">10</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">11</td><td style=";">Capex</td><td style="text-align: right;;"></td><td style="text-align: right;;">-100</td><td style="text-align: right;;">-100</td><td style="text-align: right;;">-100</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;">-50</td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">12</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">13</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">14</td><td style=";">Cashflow</td><td style="text-align: right;;"></td><td style="text-align: right;background-color: #E2EFDA;;">-100</td><td style="text-align: right;;">-100</td><td style="text-align: right;;">-100</td><td style="text-align: right;;">50</td><td style="text-align: right;;">100</td><td style="text-align: right;;">100</td><td style="text-align: right;;">50</td><td style="text-align: right;;">100</td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">15</td><td style=";">Cum</td><td style="text-align: right;;"></td><td style="text-align: right;background-color: #E2EFDA;;">-100</td><td style="text-align: right;;">-200</td><td style="text-align: right;;">-300</td><td style="text-align: right;;">-250</td><td style="text-align: right;;">-150</td><td style="text-align: right;;">-50</td><td style="text-align: right;;">0</td><td style="text-align: right;;">100</td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">16</td><td style=";">Negative cum?</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">17</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">18</td><td style=";">Fraction</td><td style="text-align: right;;"></td><td style="text-align: right;font-style: italic;;">-</td><td style="text-align: right;font-style: italic;;">-</td><td style="text-align: right;font-style: italic;;">-</td><td style="text-align: right;font-style: italic;;">-</td><td style="text-align: right;font-style: italic;;">-</td><td style="text-align: right;font-style: italic;;">-</td><td style="text-align: right;font-style: italic;;">1.0</td><td style="text-align: right;font-style: italic;;">0.0</td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">19</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">20</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">21</td><td style=";">Build period</td><td style="text-align: right;;"></td><td style="text-align: right;;">4</td><td style=";">periods</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">22</td><td style=";">Payback period</td><td style="text-align: right;;"></td><td style="background-color: #E2EFDA;;">Period 7</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr></tbody></table><p style="width:4.8em;font-weight:bold;margin:0;padding:0.2em 0.6em 0.2em 0.5em;border: 1px solid rgb(187,187,187);border-top:none;text-align: center;background-color: rgb(218,231,245);color: rgb(22,17,32)">Sheet1</p><br /><br /><table width="85%" cellpadding="2.5px" rules="all" style=";border: 2px solid black;border-collapse:collapse;padding: 0.4em;background-color: rgb(255,255,255)" ><tr><td style="padding:6px" ><b>Worksheet Formulas</b><table cellpadding="2.5px" width="100%" rules="all" style="border: 1px solid;text-align:center;background-color: rgb(255,255,255);border-collapse: collapse; border-color: rgb(187,187,187)"><thead><tr style=" background-color: rgb(218,231,245);color: rgb(22,17,32)"><th width="10px">Cell</th><th style="text-align:left;padding-left:5px;">Formula</th></tr></thead><tbody><tr><th width="10px" style=" background-color: rgb(218,231,245);color: rgb(22,17,32)">G14</th><td style="text-align:left">=SUM(<font color="Blue">G9:G11</font>)</td></tr><tr><th width="10px" style=" background-color: rgb(218,231,245);color: rgb(22,17,32)">G15</th><td style="text-align:left">=SUM(<font color="Blue">$G9:G11</font>)</td></tr></tbody></table></td></tr></table><br /><table width="85%" cellpadding="2.5px" rules="all" style=";border: 2px solid black;border-collapse:collapse;padding: 0.4em;background-color: rgb(255,255,255)" ><tr><td style="padding:6px" ><b>Array Formulas</b><table cellpadding="2.5px" width="100%" rules="all" style="border: 1px solid;text-align:center;background-color: rgb(255,255,255);border-collapse: collapse; border-color: rgb(187,187,187)"><thead><tr style=" background-color: rgb(218,231,245);color: rgb(22,17,32)"><th width="10px">Cell</th><th style="text-align:left;padding-left:5px;">Formula</th></tr></thead><tbody><tr><th width="10px" style=" background-color: rgb(218,231,245);color: rgb(22,17,32)">G22</th><td style="text-align:left">{=INDEX(<font color="Blue">G7:N7,MATCH(<font color="Red">TRUE,G15:N15>=0,0</font>)</font>)}</td></tr></tbody></table><b>Entered with Ctrl+Shift+Enter.</b> If entered correctly, Excel will surround with curly braces {}.
<b>Note: Do not try and enter the {} manually yourself</b></td></tr></table><br />
 

ClaireCat

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Joined
Mar 16, 2011
Messages
6

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Excellent, that worked a treat.

Is is possible to get it, instead of telling me which period it becomes positive, for it to tell me how many periods it took without capex in it to become positive?

So, in this case, it would say 4?
 

AlanY

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Excellent, that worked a treat.

Is is possible to get it, instead of telling me which period it becomes positive, for it to tell me how many periods it took without capex in it to become positive?

So, in this case, it would say 4?

not quite sure I understand the RED marked above.
could you elaborate a bit more?
 

ClaireCat

New Member
Joined
Mar 16, 2011
Messages
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not quite sure I understand the RED marked above.
could you elaborate a bit more?

Each period that has a capex entry is a period in which we are building kit and not carrying out actual work at a client. I need a count of how many months it takes when we are not building to make our money back.

So in the above example, there are 4 months with capex in it, so I don't want to count them.
Without capex, it is period 8 in which we are not building and making money - which is 4 periods of non-build.

It's the 4 periods of non-build that I'm interested in.
 

AlanY

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Joined
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Office Version
  1. 365
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Each period that has a capex entry is a period in which we are building kit and not carrying out actual work at a client. I need a count of how many months it takes when we are not building to make our money back.

So in the above example, there are 4 months with capex in it, so I don't want to count them.
Without capex, it is period 8 in which we are not building and making money - which is 4 periods of non-build.

It's the 4 periods of non-build that I'm interested in.

sorry, it's really out of my depth re P&L, capex etc.
will this work?

<b></b><table cellpadding="2.5px" rules="all" style=";background-color: rgb(255,255,255);border: 1px solid;border-collapse: collapse; border-color: rgb(187,187,187)"><colgroup><col width="25px" style="background-color: rgb(218,231,245)" /><col /><col /><col /><col /><col /><col /><col /><col /><col /><col /></colgroup><thead><tr style=" background-color: rgb(218,231,245);text-align: center;color: rgb(22,17,32)"><th></th><th>E</th><th>F</th><th>G</th><th>H</th><th>I</th><th>J</th><th>K</th><th>L</th><th>M</th><th>N</th></tr></thead><tbody><tr ><td style="color: rgb(22,17,32);text-align: center;">7</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;">Period 1</td><td style="text-align: right;;">Period 2</td><td style="text-align: right;;">Period 3</td><td style="text-align: right;;">Period 4</td><td style="text-align: right;;">Period 5</td><td style="text-align: right;;">Period 6</td><td style="text-align: right;;">Period 7</td><td style="text-align: right;;">Period 8</td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">8</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">9</td><td style=";">P&L</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;">50</td><td style="text-align: right;;">100</td><td style="text-align: right;;">100</td><td style="text-align: right;;">100</td><td style="text-align: right;;">100</td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">10</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">11</td><td style=";">Capex</td><td style="text-align: right;;"></td><td style="text-align: right;;">-100</td><td style="text-align: right;;">-100</td><td style="text-align: right;;">-100</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;">-50</td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">12</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">13</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">14</td><td style=";">Cashflow</td><td style="text-align: right;;"></td><td style="text-align: right;background-color: #E2EFDA;;">-100</td><td style="text-align: right;;">-100</td><td style="text-align: right;;">-100</td><td style="text-align: right;;">50</td><td style="text-align: right;;">100</td><td style="text-align: right;;">100</td><td style="text-align: right;;">50</td><td style="text-align: right;;">100</td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">15</td><td style=";">Cum</td><td style="text-align: right;;"></td><td style="text-align: right;background-color: #E2EFDA;;">-100</td><td style="text-align: right;;">-200</td><td style="text-align: right;;">-300</td><td style="text-align: right;;">-250</td><td style="text-align: right;;">-150</td><td style="text-align: right;;">-50</td><td style="text-align: right;;">0</td><td style="text-align: right;;">100</td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">16</td><td style=";">Negative cum?</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">17</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">18</td><td style=";">Fraction</td><td style="text-align: right;;"></td><td style="text-align: right;font-style: italic;;">-</td><td style="text-align: right;font-style: italic;;">-</td><td style="text-align: right;font-style: italic;;">-</td><td style="text-align: right;font-style: italic;;">-</td><td style="text-align: right;font-style: italic;;">-</td><td style="text-align: right;font-style: italic;;">-</td><td style="text-align: right;font-style: italic;;">1.0</td><td style="text-align: right;font-style: italic;;">0.0</td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">19</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr><tr ><td style="color: rgb(22,17,32);text-align: center;">20</td><td style=";">Payback period</td><td style="text-align: right;;"></td><td style="text-align: right;background-color: #E2EFDA;;">4</td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td><td style="text-align: right;;"></td></tr></tbody></table><p style="width:4.8em;font-weight:bold;margin:0;padding:0.2em 0.6em 0.2em 0.5em;border: 1px solid rgb(187,187,187);border-top:none;text-align: center;background-color: rgb(218,231,245);color: rgb(22,17,32)">Sheet1</p><br /><br /><table width="85%" cellpadding="2.5px" rules="all" style=";border: 2px solid black;border-collapse:collapse;padding: 0.4em;background-color: rgb(255,255,255)" ><tr><td style="padding:6px" ><b>Array Formulas</b><table cellpadding="2.5px" width="100%" rules="all" style="border: 1px solid;text-align:center;background-color: rgb(255,255,255);border-collapse: collapse; border-color: rgb(187,187,187)"><thead><tr style=" background-color: rgb(218,231,245);color: rgb(22,17,32)"><th width="10px">Cell</th><th style="text-align:left;padding-left:5px;">Formula</th></tr></thead><tbody><tr><th width="10px" style=" background-color: rgb(218,231,245);color: rgb(22,17,32)">G20</th><td style="text-align:left">{=MATCH(<font color="Blue">TRUE,G15:N15>0,0</font>)-COUNTIF(<font color="Blue">G11:N11,"<"&0</font>)}</td></tr></tbody></table><b>Entered with Ctrl+Shift+Enter.</b> If entered correctly, Excel will surround with curly braces {}.
<b>Note: Do not try and enter the {} manually yourself</b></td></tr></table><br />
 
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