Terms

Payout

Payout refers to the period of time in which an investment is expected to recover its initial investment outlay and become profitable from then on. It is the expected financial return or monetary disbursement from an investment or annuity. It may be expressed on an overall or periodic basis as either a percentage of the investment's cost or in a real dollar amount. It is also referred to as "time to payout," "term to payout," or "payout period."