Cost/Benefit Analysis

This Cost/Benefit Analysis Decision Aid is based on a common financial decision model for evaluating projects or proposals. Enter annual costs and benefits and then click Calculate. The results are then displayed. Use this decision support tool to test different sets of assumptions and to see results change. Check an example problem.

Discount Rate       %
 
  Direct Costs Indirect Costs Direct Benefits Indirect Benefits
Year 1 $ $ $ $
Year 2 $ $ $ $
Year 3 $ $ $ $
Year 4 $ $ $ $
Year 5 $ $ $ $
Year 6 $ $ $ $
Year 7 $ $ $ $
Year 8 $ $ $ $
Year 9 $ $ $ $
Year 10 $ $ $ $
 
 
Results
Total Costs$  Total Benefits$
Discounted
Costs
$  Discounted
Benefits
$
Benefit/Cost
Ratio

Benefit/Cost Ratio -- When benefits equal costs the ratio is 1. Projects or proposals with ratios greater than one have benefits that exceed costs. One can compare benefit/cost ratios of competing projects.

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