Calculate cost per unit, cost efficiency ratio, and compare two options to see which delivers more output per dollar from total costs and units produced.

USD throughout. Compare the same output definition, scope and quality. Cost ratios do not measure quality or prove that an option is suitable.

A label for the entered quantity; changing this choice does not convert it.

Optional settings

Blank omits margin. Zero revenue has no defined percentage margin.

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)