IBO · Glossary · Payback period

Payback period

Investment payback period

The payback period is how long it takes for the profit of a business to return the money invested in it.

Formula

Payback = month when cumulative profit ≥ money invested

Example

€600,000 invested and an EBIT of €50,000 a month: payback in 12 months. (invented numbers)

In IBO

The Investments section shows payback by scenario: current pace, plan or your own number.

Last reviewed 30 Oct 2026.