Cost Benefit Analysis Calculator

Sum of Total Expected Benefits ($):
Sum of Total Associated Costs ($):

Calculate Cost Benefit

Cost Benefit Analysis Calculator

The Cost Benefit Analysis Calculator is a tool used to assess the economic feasibility of a project or investment by comparing the costs and benefits associated with it.

Formula

The formula for conducting a basic cost benefit analysis involves subtracting the total costs from the total benefits to determine the net benefit or net cost.

Net Benefit = Total Benefits – Total Costs

Example

Let’s consider a project to install solar panels on a building. The total costs of the project include the cost of purchasing and installing the solar panels, maintenance expenses, and any financing costs.

The total benefits include the savings on electricity bills, tax incentives, and environmental benefits. By subtracting the total costs from the total benefits, we can determine whether the project is economically viable and generates a positive net benefit.