What is the payback period?

The payback period is the time it takes for a new technology to yield enough returns to pay for the initial investment or to break even.   Both the short-term impact and the long-term benefits of a potential investment should be considered.

The more often an investment is utilized by a greater number of individuals, the faster the payback period.  Increased efficiency, improved or added functionality, productivity growth, and better collaboration are some of the factors involved in the payback period.