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.
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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 ($)
- TC is the total cost ($)
How to Calculate Benefit to Cost Ratio?
The following example problems outline how to calculate Benefit to Cost Ratio.
Example Problem #1:
- First, determine the total monetary benefit ($).
- The total monetary benefit ($) is given as: 1500.
- Next, determine the total cost ($).
- The total cost ($) is provided as: 400.
- 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 = ?
