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 (\$)

## 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