Enter the total monetary benefit ($) and the total cost ($) into the Benefit to Cost Ratio Calculator. The calculator will evaluate and display the Benefit to Cost Ratio. 

Benefit to Cost Ratio Formula

The following formula is used to calculate the Benefit to Cost Ratio. 

BCR = MB / TC
  • Where BCR is the Benefit to Cost Ratio ( )
  • MB is the total monetary benefit ($) 
  • TC is the total cost ($) 

To calculate the benefit-to-cost ratio, divide the total monetary benefit by the total cost.

How to Calculate Benefit to Cost Ratio?

The following example problems outline how to calculate Benefit to Cost Ratio.

Example Problem #1:

  1. First, determine the total monetary benefit ($).
    • The total monetary benefit ($) is given as: 1500.
  2. Next, determine the total cost ($).
    • The total cost ($) is provided as: 400.
  3. Finally, calculate the Benefit to Cost Ratio using the equation above: 

BCR = MB / TC

The values given above are inserted into the equation below and the solution is calculated:

BCR = 1500 / 400 = 3.75 ( )

Example Problem #2: 

For this problem, the variables required are provided below:

total monetary benefit ($) = 6000

total cost ($) = 1000

Test your knowledge using the equation and check your answer with the calculator above.

BCR = MB / TC = ?