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payback period

   Also found in: Financial, Acronyms, Encyclopedia, Wikipedia 0.01 sec.
payback period,
n the length of time required for the net revenues of an investment to return the cost of the investment.


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Since fewer good site locations are available in this competitive market and land costs continue to escalate, the payback period on building new car washes is relatively long.
The payback period is comparatively short, and the savings are immediate.
As another example, if a new boiler costs $100,000 and saves $10,000 per year on energy, is the payback period 10 years?
 
 
 
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