Over a million PC users and PDA owners have already downloaded our popular calculator software Calc98. The current version (5.3) is available for free download. It runs on Microsoft Windows95/98/ME, WindowsNT, Windows2000, XP, Vista, Windows 7, Windows 8, Windows 10, and on PDA devices running Windows Mobile (Pocket PC). You can view the product documentation online.

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.The content of this site is not intended to be financial advice. This site was designed for educational purposes. The user should use information provided by any tools or material at his or her own discretion, as no warranty is provided. Using everyday cash for projects that aren’t every day is a common mistake entrepreneurs make. This can put a lot of stress on your cash flow, especially if your business hits an unexpected bump. A better strategy is to use a business loan for your growth projects. Our business loan calculator.

Calc98 version 5.3 is free to use. You can also order the latest version of Calc98 for Windows or Windows Mobile/Pocket PC for immediate download.

For more information about Calc98, see our Frequently Asked Questions page.

Downloading Calc98

First, choose the correct version below, depending on your computer and operating system. Follow the link to download the self-extracting zip file. When you have got the file, double click on it to extract the files. Further instructions and documentation are provided in the extracted files. On Windows Vista you may need to right click the file and choose 'Run as administrator' to allow it to install the files to the default location. For more information about installing see the Frequently Asked Questions.

Desktop Windows

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Most users will need the standard Windows version. The Unicode version is only needed if you use a non-Latin1 code page, and you are running WindowsNT, Windows2000, WindowsXP, Windows Vista or Windows 7. On Windows Vista and Windows 7/8/10 you may need to initially adjust the calculator border.

GNU/Linux, FreeBSD and Solaris

There is no special version for UNIX type operating systems, but it should run under Wine, the Windows compatibility layer for X and UNIX (see the screenshot). You will need to download the standard Windows version, above, and install Wine if you have not already done so.

Windows CE (e.g. Pocket PC)

Calc98 on an iPaq You will need to decide which version to download, depending on the processor used (please refer to our table of devices). Some very early WindowsCE devices run Windows CE 1, which is no longer supported. Most of these devices can be upgraded to Windows CE 2, for which you will need to contact the manufacturer of the device.

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The payback period formula is used to determine the length of time it will take to recoup the initial amount invested on a project or investment. The payback period formula is used for quick calculations and is generally not considered an end-all for evaluating whether to invest in a particular situation.

The result of the payback period formula will match how often the cash flows are received. An example would be an initial outflow of $5,000 with $1,000 cash inflows per month. This would result in a 5 month payback period. If the cash inflows were paid annually, then the result would be 5 years.

At times, the cash flows will not be equal to one another. If $10,000 is the initial investment and the cash flows are $1,000 at year one, $6,000 at year two, $3,000 at year three, and $5,000 at year four, the payback period would be three years as the first three years are equal to the initial outflow.

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Use of Payback Period Formula

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There are a few drawbacks to the payback period formula that may warrant one to consider using another method of determining whether to invest.

One issue is that the payback period formula does not look at the value of all returns. Suppose a situation where there are two choices to choose from where investment X has a payback period of 1 year and investment Y has a payback period of 2 years. However, investment X will only return the initial investment whereas investment Y will eventually pay double the initial investment. Given the additional information not provided by the payback period formula, one may consider investment Y to be preferable. The formula for the net present value method may be used to close this information gap in order to properly evaluate the best choice.

However, it is worth mentioning that although the net present value method may be preferable to determine long term profitability, the payback period formula helps with cash flow analysis for short term budgeting. Suppose a situation where investment X has a net present value of 10% more than its initial investment and investment Y has a net present value of triple its initial investment. At first glance, investment Y may seem the reasonable choice, but suppose that the payback period for investment X is 1 year and investment Y is 10 years. Investment Y could cause problems if the investment is needed sooner. An analogy of this would be like banks where maintaining cash flows of their investments(loans) is vital to their business.

Another issue with the formula for period payback is that it does not factor in the time value of money. The time value of money concept, as it applies to the payback period formula, proposes that each future cash flow is worth less when compared to today's value. The discounted payback period formula may be used instead to consider the time value of money, however the discounted payback period formula takes away the benefit of making quick calculations.

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