Cost-Benefit Ratio Calculator
Calculate cost-benefit ratio for project analysis
About this calculator
The Cost-Benefit Ratio Calculator helps evaluate project profitability by comparing total benefits to total costs. This essential financial tool calculates whether an investment or project is worthwhile by showing how much benefit is generated per dollar spent. A ratio greater than 1.0 indicates the project creates value, while ratios below 1.0 suggest costs exceed benefits. Perfect for business decisions, project management, and investment analysis.
How to use
Enter your total project benefits in monetary terms, then input the total project costs. The calculator will instantly compute your cost-benefit ratio by dividing benefits by costs. Review the result to determine if your project is financially viable and compare multiple projects effectively.
Frequently asked questions
What is a good cost-benefit ratio?
A ratio above 1.0 is positive, meaning benefits exceed costs. Higher ratios like 2.0 or 3.0 indicate stronger project value and profitability.
Should I include indirect costs?
Yes, include all relevant costs like overhead, opportunity costs, and indirect expenses for accurate analysis and realistic project evaluation.
How do I quantify intangible benefits?
Assign monetary values to intangible benefits like improved efficiency, customer satisfaction, or brand value using market research and industry benchmarks.