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Payback Period Calculator

Payback Period Calculator

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Pro Tip

Payback period tells you risk exposure, not profitability. A project with a 2-year payback might return less total profit than one with a 5-year payback — always pair with NPV or IRR.

Did You Know?

Most businesses require a payback period of under 3 years for capital investments. Longer paybacks are acceptable for strategic or regulatory investments where ROI is secondary.

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