Glossary
Payback period
Payback period is the time it takes for something you spend on, such as equipment or a project, to earn back the same amount in profit.
What it means for a shop owner
Divide the amount by the extra monthly profit. The shorter the period, the lower the risk. Do not look at it alone, since some investments pay back later but last longer.
A worked example
A display fridge costing 1200 adds 100 profit a month. The payback period is 1200 divided by 100, which is 12 months.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes