Simple Description

When something is able to pay for itself, e.g. a cheap but effective form of house insulation.

Further Detail

For example, if double glazing costs £10,000 and loft insulation costs £500 but they both save you £250 per year in reduced heating bills, double glazing takes 40 years to pay for itself but loft insulation only takes 2 years. Loft insulation is more cost effective.

Related Words:

• Pay back time
• Double glazing
• U value

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