payback period


The amount of time taken to break even on an investment. Since this method ignores the time value of money and cash flows after the payback period, it can provide only a partial picture of whether the investment is worthwhile.

Use payback period in a sentence

There was a long enough payback period that I did not have to worry a lot because I would be fine, in the end.

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You need to make sure that you can have enough funds ready by the end of the payback period so you are not late.

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The payback period was going to end in exactly three years after beginning the project as we had projected the breakeven point carefully.

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discounted payback period capital expenditure proposal