Enter the total spent ($) and the total number of outcomes achieved into the calculator to determine the Cost Efficiency. 

Cost per Unit
Efficiency Ratio
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Find your cost efficiency by unit produced or delivered.
Total cost
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Units produced / delivered
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Revenue per unit (optional, for margin)
Cost efficiency ratio = standard (budgeted) cost ÷ actual cost.
Standard / budgeted cost
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Actual cost
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Compare two options to see which delivers more output per dollar.
Option A
Cost
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Output / units
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Option B
Cost
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Output / units
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Cost Efficiency Formula

The following formula is used to calculate the Cost Efficiency. 

Ecost = TS / O
  • Where Ecost is the Cost Efficiency ($/outcome)
  • TS is the total spent ($) 
  • O is the total number of outcomes achieved 

to calculate the cost efficiency, divide the total amount spent by the total number of outcomes achieved.

How to Calculate Cost Efficiency?

The following two example problems outline how to calculate the Cost Efficiency.

Example Problem #1:

  1. First, determine the total spent ($). In this example, the total spent ($) is given as 100.
  2. Next, determine the total number of outcomes achieved. For this problem, the total number of outcomes achieved is given as 4.
  3. Finally, calculate the Cost Efficiency using the equation above: 

Ecost = TS / O

Inserting the values from above and solving the equation: 

Ecost = 100 / 4 = 25 ($/outcome)

Example Problem #2: 

Using the same process as above, first define the variables required by the formula. In this case, these values are:

total spent ($) = 500

total number of outcomes achieved = 6

Entering these values yields:

Ecost = 500 / 6 = 83.33 ($/outcome)