Monday, August 1, 2011

Payback Period Template

In business and economics, payback period refers to the time period essential for the return of any amount of money paid on an investment to "refund" the sum of the original investment. Payback period is the number of years necessary for an organization to recall an initial investment. This may relate to a complete business function or an individual project.

Payback on investment tells you the percentage return you have completed over a particular period as a result of the said investment. You may indicate a time period for the maturity of your investment, that fits in according to your organization’s planning cycle – perhaps a year or two years. Similarly, you may also want to estimate the period of time to match up to the lifetime of the benefit of the investment. Another way at understanding payback period is to work out how many months or time period it will take before the profit of the investment match the costs and the expenses sustained.

In simple words, payback period is determined as costs incurred, divided by monthly benefits.
In business investments, payback period is of significant importance. If the resulting figure is comparatively less, as in a few months, then the administration will be that much more optimistic to make the investment.
Here we have our professionally designed Payback Period Template, which can help you out while determining the payback time period of your current or expected investment. You can also decide if your expected investment appears for you to be feasible or not. This is a specifically designed template, which is easy to use, and modify for any one. You can just download it from our site, make some necessary changes, and you are ready to get started with your work.
Here is the preview and download link to this Free Payback Period Template,

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