What is the difference between break-even point and payback period?

  , BEP : the point at which total cost and total revenue are equal no net loss or gain ...pay back period : the length of time needed to recover the cost of an investment

Break even point the level of activity neither a profit nor a loss. The fact contributes towards recovery of fixed cost and the making of profit. That's the contribution grow with the sales revenue till the time is just covered the fixed cost. This is the break even point. Break even point = fixed cost devided by P/Vratio. Pay back period is an investment length of time required for for the cumulative net cash flow from the investment to equal the total initial cash outlay. That means the investor has recover the money invested in the project. Pay back period period = capital investment devided by annual expected after tax net cash flow.