Payback Period

Filed Under: Business

1 definition found for this term.
Definitions are presented in the order source books were published (most recent first).


In capital budgeting, is the length of time needed to recoup the cost of Cap­ital Investment. The payback period is the ratio of the initial investment (cash outlay, regardless of the source of the cash) to the annual cash inflows for the recovery period.

Scroll to Top