break-even time

Definition

The amount of time needed for the discounted cash flows of an investment to equal the initial cost of the investment. The longer the break-even time the riskier an investment is, since it will take a longer period of time for the investor to recoup the investment's cost.

Use break-even time in a sentence

The break-even time was calculated and presented to the angel investor who approved our business plan and funded us fully.

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You should try to make sure that you are at least working with break-even time so that you are getting something for your work.

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The break-even time for the new investment was not right for the investor, he knew he would not make back the money he would have invested within a small enough time frame to reduce risk of loss.

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