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Cost-Benefit 

Analysis 

Image by Jamie Street

What is it? 

Cost-benefit analysis is an economic evaluation that allows for analysis of decisions, systems, or values. The benefits and costs of an action are identified and weighed. Health professionals and organizations use this evaluation to determine the benefits of health interventions and actions, and weigh it against the costs of the intervention or taking action. Benefits are described as results of the interventions or actions, including medical costs averted. Costs include money and time it takes to implement the program. 

How to Calculate CBA

1. Monetary Valuation

         Estimation of benefits 

         Estimation of costs 

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2. Calculation of Net Benefits 

             Benefits

         -  Costs            

             Net Benefits 

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