What is the ‘Payback Period’?

The payback period is the time taken to pay back the investment, ie when the costs equal the benefits.

A short payback period may add to the business case for investing in further training.

The ROTI Calculator calculates the payback period by comparing reported benefits with reported costs as follows:

Payback Period = costs/monthly benefits

For example:

Number of months over which benefits are calculated:
 Total Benefits  81,500
 Monthly benefits  6,792
 Total Costs  15,000
 Payback period =
 2.2 months


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