Formula
Payback period = Initial investment ÷ Periodic cash benefit.
Estimate how long an investment takes to recover from recurring cash benefits.
Divide the initial investment by the recurring cash benefit per period.
Payback period = Initial investment ÷ Periodic cash benefit.Estimate how long an investment takes to recover from recurring cash benefits.
Payback period = Initial investment ÷ Periodic cash benefit.
Divide the initial investment by the recurring cash benefit per period.