Return on investment and payback period answer the same question in different currencies: percent for the annual report, months for the cash-flow plan.
Payback is the number that governs survival
A project with a brilliant five-year ROI can still sink you if it takes 40 months to repay while your runway is 18. Boards approve on ROI; your bank balance forgives only payback.
Frequently asked questions
Should I discount future gains?
For a board-grade ROI model, yes — a dollar in month 20 is worth less than one in month 4. For quick project screening, the undiscounted numbers here are the standard first pass.
Connectica provides information only, not financial, investment, legal or tax advice. Figures on this page are estimates and generalizations — confirm anything that matters with the relevant professional or authority.