Back to glossary

Payback period

Procurement glossary
Get the latest updates

Stay ahead of the curve with our latest content

Subscribe to our newsletter and get fresh insights every month

What is payback period?

The time it takes for an investment, project, or purchase to 'pay for itself' through the cash inflows it generates. It's calculated by dividing the initial investment by the annual net cash inflow. Shorter payback periods are generally preferred because they reduce the risk associated with the investment.

See how Precoro can help with Payback period

See how Precoro fits into your team's workflows

A personalized demo, built around your team’s challenges, led by experts who understand what matters.

Employee photo Employee photo Employee photo Employee photo Employee photo Employee photo

See how Precoro works

By clicking on "Request a Demo," you agree to our Terms of Service and Privacy Policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.