The page provides you the Cost benefit ratio formula to calculate the Benefit-Cost Ratio. It is calculated by dividing discounted value of incremental benefits by discounted value of incremental costs. Just substitute the values of discount rate and the number of years in this BCR Formula to perform calculation. Also this set of Benefit cost ratio formulas has the formulas for calculating total cost, total benefits, discounted cost and discounted benefits.

Total Benefits =

Discounted Costs =

Discounted Benefits =

Benefit/Cost Ratio = Discounted Benefits / Discounted Costs

Where,

dr = Discount Rate

c = Number of Years

dc = Direct Cost

idc = Indirect Cost

db = Direct Benefits

idb = Indirect Benefits

Benefit Cost Ratio is one of the criteria for project investment. Cost benefit ratio formula is a simple formula that requires only basic addition operation for the calculations.