Weigh your options with our cost benefit analysis example

A cost benefit analysis is a powerful tool for laying out the pros and cons of a project. These exercises are often used by business professionals and teams to determine the monetary value of an investment.

So what is the importance of cost-benefit analysis? Even a simple cost benefit analysis example provides valuable information about project scope, the intangible benefits or indirect benefits, unifies decision-making across the team, and ensures you’re using resources effectively.

Wondering how to do a cost benefit analysis? Gather around our editable cost benefit analysis template and find the most promising strategies together.

If you’re curious about how to evaluate the findings of a cost benefit analysis, or wondering how to present cost benefit analysis calculations to your team, begin by filling in an example of cost benefit analysis. Then, list the value and costs of the strategies, products, or projects that you’re considering. Based on the value your subjects provide and how much they will cost you, organize them into the following quadrants:

- Low effort, low reward

- Low effort, high reward

- High effort, low reward

- High effort, high reward

Once everything is arranged on the matrix according to their reward/effort, you’ll be able to quick calculations as to which ideas are worth pursuing for the best customer satisfaction and the best business decision.

No matter the complexity of your cost benefit analysis sample, the final step is always to compare the various options and decide on the next actionable step. As you do, remember to bring your team into the discussion. Your team's various skill sets and experiences will be crucial for identifying the trade-offs between strategies, revealing hidden or indirect costs like labor and time, and providing new insights into your decision.