Learn how to calculate payback and discounted payback in Excel with formulas, SCAN, XMATCH, LET, and SWITCH, plus ...

What Is a Payback Period? The payback period is the amount of time (usually measured in years) it takes to recover an initial investment outlay—as measured in after-tax cash flows. For example, if a ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Definition: An investment’s payback period in years is equal to the net investment amount divided by the average annual cash flow from the investment. What it means: How long will it take to get my ...

Daniel Jassy, CFA, is an Investopedia Academy instructor and the founder of SPYderCRusher Research. He contributes to Excel and Algorithmic Trading. Suzanne is a content marketer, writer, and ...