Enter the cost and effectiveness into the calculator to determine the cost effectiveness. This calculator helps in evaluating the economic value of an investment or treatment relative to its effectiveness.

Cost Effectiveness Formula

The following formula is used to calculate the cost effectiveness.

CE = C / E


  • CE is the cost effectiveness (USD/unit)
  • C is the cost (USD)
  • E is the effectiveness (units)

To calculate the cost effectiveness, divide the cost by the effectiveness. The result will give you the cost per unit of effectiveness, allowing you to compare the economic value of different options.

What is Cost Effectiveness?

Cost effectiveness is a measure used to determine the economic value of an investment, treatment, or intervention. It is calculated by dividing the cost by the effectiveness, which can be measured in various units such as lives saved, cases prevented, or quality-adjusted life years (QALYs). This measure helps decision-makers to compare and prioritize different options based on their economic efficiency.

How to Calculate Cost Effectiveness?

The following steps outline how to calculate the Cost Effectiveness.

  1. First, determine the cost (C) in USD.
  2. Next, determine the effectiveness (E) in the chosen units of measure.
  3. Next, gather the formula from above = CE = C / E.
  4. Finally, calculate the Cost Effectiveness (CE) in USD per unit of effectiveness.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

Cost (C) = $5000

Effectiveness (E) = 250 units