The payback period is the simplest way to express how long an operator waits before a padel court pays for itself. It is build cost divided by annual net contribution, expressed in years — a court built for €40,000 that nets €15,000 a year has a payback of around 2.7 years.
Why it's useful
Payback is intuitive. It bypasses the complications of NPV and discount rates, and gives an operator a number they can compare against alternative uses for the capital. It's the metric installers and lenders both reach for first when evaluating a project.
Why it's incomplete
Payback ignores everything that happens after the break-even point. A court with a 4-year payback that then runs profitably for 12 more years is a stronger investment than one with a 3-year payback that needs major resurfacing in year 5. Use payback to screen, then look at lifetime contribution to choose between alternatives.
Reasonable benchmarks
For a well-located court running healthy utilisation, a payback in the 3–5 year range is a reasonable target in most European markets. Anything under 3 is excellent; anything over 6 deserves a hard look at the utilisation assumptions.