Loading content
A methodical approach to systematically compare costs and benefits of an intervention to support evidence-based decision making.
Cost–Benefit Analysis is a structured evaluation method that systematically compares monetary and non-monetary effects of projects or interventions. It quantifies costs and benefits over a defined timeframe, including discounting and distributional considerations, enabling comparable appraisal of alternatives to support rational investment and policy decisions. Uncertainties are addressed via sensitivity analysis.
Discounted sum of expected benefits minus costs over the analysis period.
Ratio of discounted benefits to the sum of discounted costs.
Time span until cumulative benefits cover the initial costs.
Assessment of construction projects including direct user benefits and wider societal impacts.
Cost-benefit comparison between legacy operation and migration to a modern platform.
Quantitative evaluation of regulatory proposals to support agency decision making.
Define scope, objectives and alternatives.
Identify relevant cost and benefit categories.
Collect data and document assumptions.
Perform calculations (NPV, BCR) and apply discounting.
Conduct sensitivity analyses and derive a decision.