Yahoo Web Search

Search results

1. www.investopedia.com › terms › pPayback Period: Definition, Formula, and Calculation

   www.investopedia.com › terms › p

   • Cached

   Jun 14, 2024 · Learn how to calculate the payback period, the amount of time it takes to recover the cost of an investment. Find out the advantages and disadvantages of using this metric and how it differs from the breakeven point.

   • Author: Julia Kagan

   • Video Duration: 2 min

2. People also ask

   How to calculate payback period?

   • The payback period formula is one of the most popular formulas used by investors to know how long it would generally take to recoup their investments and is calculated as the ratio of the total initial investment made to the net cash inflows. The below mentioned formula helps to compute payback period.

   Payback Period - What Is It, Formula, How To Calculate - WallStreetMojo

   www.wallstreetmojo.com/payback-period/

   See all results for this question

   When should cash flows be calculated for a payback period?

   • When cash flows are NOT uniform over the use full life of the asset, then the cumulative cash flow from operations must be calculated for each year. In this case, the payback period shall be the corresponding period when cumulative cash flows are equal to the initial cash outlay.

   Payback Period - What Is It, Formula, How To Calculate - WallStreetMojo

   www.wallstreetmojo.com/payback-period/

   See all results for this question

   How do you calculate a payback period for a new building?

   • Still undecided about whether to purchase a new building, you decide to calculate your payback period. To calculate it, you would divide the investment by the cash flow the investment would create. Here, the monthly savings or cash flow amount would be $6,000 per month or $72,000 per year.

   Understanding the Payback Period and How to Calculate It

   www.fool.com/the-ascent/small-business/accounting/payback-period-formula/

   See all results for this question

   How do equity firms calculate a payback period?

   • • Generally, the longer the payback period, the higher the risk. • There are two formulas for calculating the payback period: the averaging method and the subtraction method. • Equity firms may calculate the payback period for potential investment in startups and other companies to ensure capital recoupment and understand risk-reward ratios.

   How to Calculate the Payback Period: Formula & Examples

   www.sofi.com/learn/content/how-to-calculate-the-payback-period/

   See all results for this question

3. www.wallstreetprep.com › knowledge › payback-periodPayback Period | Formula + Calculator - Wall Street Prep

   www.wallstreetprep.com › knowledge › payback-period

   • Cached

   Feb 5, 2024 · Learn how to calculate the payback period, the time required to recoup the cost of an investment, using a simple formula and an Excel template. See examples, illustrations, and a discounted payback period analysis.

4. Videos

   • 

     youtube.com

     Payback Period - Basics, Formula, Calculations in Excel (Step by Step)

     Apr 28, 2022

     24.1K Views

   • 

     3:12

     youtube.com

     How to Calculate the Payback Period

     Jan 3, 2016

     358K Views

   • 

     3:48

     youtube.com

     Payback Period: Formula & How to Calculate Payback Period

     Jun 14, 2018

     48.3K Views

   View all

5. www.wallstreetmojo.com › payback-Payback Period - What Is It, Formula, How To Calculate

   www.wallstreetmojo.com › payback-

   • Cached

   May 3, 2024 · Learn how to calculate payback period, the time required to recover the initial investment in a project or opportunity. See the formula, examples, advantages, disadvantages and related concepts of payback period.

6. www.sofi.com › how-to-calculate-the-payback-periodHow to Calculate the Payback Period: Formula & Examples

   www.sofi.com › how-to-calculate-the-payback-period

   • Cached

   Aug 3, 2023 · Learn what the payback period is and how to use two formulas to calculate it for different types of investments. See examples of how to compare payback periods and understand the benefits and drawbacks of this method.

7. corporatefinanceinstitute.com › payback-periodPayback Period - Learn How to Use & Calculate the Payback Period

   corporatefinanceinstitute.com › payback-period

   • Cached

   Learn how to use and calculate the payback period, which shows how long it takes to recoup the cost of an investment. Find out the drawbacks and limitations of this method and how to use alternative measures such as IRR.

8. www.fool.com › accounting › payback-period-formulaUnderstanding the Payback Period and How to Calculate It

   www.fool.com › accounting › payback-period-formula

   • Cached

   May 10, 2024 · Learn what the payback period is and how to use a simple formula to calculate it. The payback period is the time it takes to recoup an investment or reach a break-even point.

9. www.myaccountingcourse.com › payback-periodPayback Period (PBP) Formula | Example | Calculation Method

   www.myaccountingcourse.com › payback-period

   • Cached

   Learn how to calculate payback period, the time it takes for an investment to earn enough money to pay for itself. See how management uses payback period to evaluate risk and compare different investment options.