payback period
Investment recovery duration
The payback period is the time required for an investment to generate enough returns to recover its initial cost.
A solar panel system with a five-year payback period means the energy savings will equal the installation cost after five years.
Shorter payback periods indicate lower risk: The project has a payback period of eighteen months.
- breakevenNo profit, no loss
- investmentDeploying capital for returns
- capital expenditureSpending on fixed assets
- recoupRegain a loss
- amortizationGradual debt reduction schedule
initial investment · cash flow · profit · returns · timeline · horizon · capital · recover · months · years · calculation · threshold · analysis · depreciation · outlay · earnings · recuperate · financial
- financial metricsROI, ROE, EPS, P/E ratio, PE ratio
- payday loanspayday loan, payday loans, cash advance, rollover, fee
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- time horizonsshort-term, long-term, immediate, near-term, mid-term
- energy metricspower consumption, wattage, kilowatt hours, power rating, energy output
- Financial Modelsdiscounted cash flow, pro forma, forecast model, financial modeling, forecast
payback periodnet present value
Discounted sum of cash flows
NPV · return on investment · ROI · IRR · total return
payback, period, back, paid, paying, payable, payment, payer, repayment