Discounted payback is calculated in the same way as simple payback except that cash flows are calculated using discounted cash flows instead of future cost cash flows. Discounted Payback is simple payback that accounts for the time value of money.

The Visual Economic Tool uses the cash flows calculated for each year in the life cycle to determine payback. If a payback year has not been met in the life cycle, 'No Payback' will be displayed. This is because there is no more cash flow information available to calculate payback, if you use a longer life cycle this may allow for payback to be calculated.