How do you calculate Benefit-Cost Ratio (BCR)?

BCR = Total Expected Benefits ÷ Total Expected Costs.

What does a BCR greater than 1.0 mean?

It means your expected benefits outweigh your costs, suggesting the project may be financially worthwhile.

Benefit-Cost Ratio (BCR) Calculator

The Benefit-Cost Ratio (BCR) helps you compare total expected project benefits against total expected costs. A BCR above 1.0 typically means the project is financially justifiable.

BCR Calculator

Total Expected Project Benefits ($) Total Expected Project Costs ($)

How to interpret Benefit-Cost Ratio

BCR = Total Benefits ÷ Total Costs • BCR > 1.0 → benefits outweigh costs (usually good)
• BCR < 1.0 → costs outweigh benefits (usually not recommended)