Payback Period - The time it takes to recover the cost of the Initial Investment

Posted by Wilbur Omar Chua on September 7th, 2021

What is payback period? The payback period is one of the most important aspects investors should consider when making an investment. Aside from the potential growth a company has, payback period is also one of the criteria investors look at when we talk about the riskiness of a project. 


In the page provided, we provided a list of financial model templates which include a payback period section for different industries. The Payback period is the time required in order for the investment to repay its original costs in the form of cash flow, savings, or profits. So how is payback period calculated? We can use the payback period excel templates provided as a guide or reference on how you make your own financial model which can calculate a payback period for your particular investment. We also shared some more details about the calculation for payback period and the many ways you can use it to get the desired amount.