When will I get my Money Back

Payback Period

Calculate how long it takes for a Project to pay for itself
This is the initial money spent / invested in an effort to make more money
This is a steady stream of money that you expect to get back.

The Payback Period tells you just that! How long will it take for you to get your money back if you invest in a project that promises to provide you with a specified amount of cash at the end of each year. 

This is a simplified version of the formula to ensure you understand the concept. You can extend this to adjust for inflation, risks, and so on…