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Cost-Benefit Analysis

Quantify the financial impact of your decision by comparing costs and benefits over time.

Project Setup

Used for calculating Net Present Value (NPV)

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Costs

No costs added yet

Total Costs: $0
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Benefits

No benefits added yet

Total Benefits: $0

Financial Analysis

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Net Benefit
$0
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ROI
0%
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Payback Period
-
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NPV
$0

Financial Insights

Add costs and benefits to see detailed financial analysis...

Year-by-Year Breakdown

Add costs and benefits to see yearly breakdown...

Understanding Financial Metrics

Key Metrics

  • ROI: Return on Investment = (Benefits - Costs) / Costs × 100%
  • NPV: Net Present Value considers time value of money
  • Payback Period: Time to recover initial investment
  • Net Benefit: Total benefits minus total costs

Decision Guidelines

  • Positive NPV: Project creates value
  • ROI > 15%: Generally considered good
  • Shorter Payback: Lower risk, faster returns
  • Compare Alternatives: Choose highest NPV option