Payback 
     

The time period before the profit from an investment will equal your original investment for it.

To calculate the payback, you plug the cumulative cash flow versus time. At the beginning of an investment, the cash flow gets negative until the investment starts to produce a return. Typically, after 1 to 3 years, the cumulative cash flow becomes positive because of the profits from the operations. This time period is the payback of the investment.

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