Definition of payback period in English:

payback period


  • The length of time required for an investment to recover its initial outlay in terms of profits or savings.

    ‘if insulation costs £110 and saves £55 a year, its payback period would be two years’
    • ‘While the payback period of 80 years may seem long, conversion to solar power has been said by some to add as much as 1% to the value of your home.’
    • ‘After the payback period is identified through financial analysis, this and other data can be used to determine the terms of a contract.’
    • ‘At current electric rates, these systems would have a simple payback period of 10 to 20 years in most areas.’
    • ‘Getting any train operator on board for such investment would require a payback period possible in only a very long franchise.’
    • ‘The government's original proposals put the capital payback period at 20-25 years; I believe it has now risen to 47 years.’
    • ‘After the payback period has ended, the building owner reaps the savings from reduced water and energy costs.’
    • ‘Higher gasoline prices will shorten that payback period.’
    • ‘The payback period for this extra cost will be at least 25 years.’
    • ‘The after-tax payback period is projected at almost two years.’
    • ‘Some applications, such as high-temperature steam lines, can have a payback period of months, not years.’
    • ‘‘The usual payback period for a national newspaper would be five to seven years,’ he says.’
    • ‘The payback period for investments in alternative energy sources is long.’
    • ‘The rent increase on enclosure gave a constant surplus each period, so the reciprocal of the payback period was the rate-of-return on the initial capital.’
    • ‘For example, an energy-efficient dryer that costs $500 and saves $100 per year in energy costs has a simple payback period of 5 years.’
    • ‘The analyst first investigated the payback period, which was defined as the length of time required to recover the cost of an investment.’
    • ‘He believes the payback period would be 10 to 20 years.’
    • ‘The project's underground parking may significantly lengthen the project's payback period, she added.’
    • ‘An estimate of the installed cost, annual energy savings and projected payback period will have to be determined.’
    • ‘It costs a fraction of a normal car space and the payback period can be as little as two years if you rent or lease the extra space.’
    • ‘Annual savings run to about $160,000 for a payback period of a little more than four years.’