How Do You Calculate Cost Benefit Analysis

Introduction & Importance

Cost benefit analysis (CBA) is a systematic approach to evaluating the pros and cons of a particular project, policy, or program. It helps decision-makers understand the expected costs and benefits of a decision, enabling them to make informed choices. CBA is crucial for allocating resources effectively and ensuring that public and private investments generate the greatest possible benefits.

For more information on cost benefit analysis, refer to the Office of Management and Budget’s Circular A-117 and the University of North Carolina’s guide on cost-benefit analysis.