Definition: An investment’s payback period in years is equal to the net investment amount divided by the average annual cash flow from the investment. What it means: How long will it take to get my ...

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 ...

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 ...