Question 1

Does payback include profit after recovery?

Accepted Answer

No. Payback measures the time to break even, not the total profit beyond that point.

Question 2

Does it account for discount rates?

Accepted Answer

Not in the basic payback definition. Discounted payback uses a discount rate and is different.

Question 3

Can payback be fractional?

Accepted Answer

Yes if cash flow happens continuously or if the tool interpolates between periods. Otherwise it reports the first whole period where break-even happens.

Payback Period Calculator

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