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Investments glossary

Payout

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Quotes of the day:

All that is gold does not glitter; not all those that wander are lost.

— J. R. R. Tolkien, The Fellowship of the Ring, 1954

Payout refers to 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. Payout can also refer to the period in which an investment or a project is expected to recoup its initial capital investment and become minimally profitable. It is short for time to payout, term to payout, or payout period.

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