Cost-benefit analysis is the process of calculating and comparing the costs and benefits before selecting an option or project. This cost benefit analysis template allows decision makers to select the solution or project that offers the greatest return against the cost of implementation. For simplicity, the analysis results are presented in terms of a payback period and a benefit-cost ratio, assuming that all projects are short-term in nature.
To use the template, identify the most promising options or projects among several proposals, list their costs and benefits in separate worksheets, and then compare using either the payback period method or the benefit-cost ratio.
This template runs in Excel, and you can use and modify to suit your specific needs. For example, you may expand the spreadsheet if you have many costs items to be considered. You may also adjust the benefit-cost formula to be aligned with your preferences. Additionally, you can have separate worksheets for each alternative and create an additional worksheet to consolidate and summarize the results.
Cost Benefit Analysis Template (24 KB)