Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...
Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of ...
Imagine investing in a promising project, only to realize years later that it’s taking far longer than expected to recoup your initial outlay. Wouldn’t it have been invaluable to know upfront how long ...
What Is a Payback Period? The payback period is the amount of time (usually measured in years) it takes to recover an initial investment outlay—as measured in after-tax cash flows. For example, if a ...
Imagine you bought a vending machine for $2,000. This vending machine made you profits of $100 a year, after all expenses. It would take 20 years to recoup your initial investment. The amount of time ...
The payback periodmeasures how long a project or investment takes to repay any initial outlay. For example, if you spend £1,000 on shares, then receive a dividend of £200 at the end of every year, the ...