Cost Benefit Analysis Calculator

Enter the sum of the present value of all expected benefits and the sum of the present value of all associated costs. The calculator will evaluate and display the cost benefit.

Cost Benefit Analysis Formula

The following equation can be used to calculate a cost benefit analysis.

Cost Benefit = Sum of Present Value of Expected Benefits/ Sum of the present value of associated costs

It’s important to make note that this calculator uses the present value of the benefits in costs. This is to take into account their current values instead of future values which can be harder to determine.

What is a cost benefit analysis?

A cost benefit analysis is a metric used to understand the benefits of associated costs. When analyzing business expenses, understanding the direct benefit of your costs can help managers make decisions on where to cut costs or keep them.

cost benefit analysis calculator

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