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Home→The Westburn Dictionary of Marketing→P→payback period

payback period

Definition:
The time period that corresponds to a percentage return-on-investment (ROI). That is, a return on investment of 20 per cent would recover such an investment in five years: it could be said to have a five-year payback period. Widely used as a planning concept to justify effort and expenditure, and enable comparison between alternative projects.

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© Westburn Publishers Ltd 2002, The Westburn Dictionary of Marketing edited by Michael J Baker, ISBN 978-0-946433-01-8. www.themarketingdictionary.com. Entry: [James R. Bureau], [1998].