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 ($)
- TC is the total cost ($)

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:

- 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** = ?**