1. Project Management
  2. Business Value

Cost-Benefit Ratio Estimate


Assesses the financial value of a project relative to its cost, aiding stakeholders in determining the project's economic viability. A higher ratio signifies more benefits relative to costs.


Cost-Benefit Ratio = Total Benefits (in monetary terms) / Total Costs


If a project yields benefits worth $150,000 and has costs of $100,000, the cost-benefit ratio is 1.5.