The Cost Benefit Analysis (CBA) Calculator is a useful tool for evaluating the financial feasibility of a project by comparing its total costs with the expected benefits. This calculator helps determine whether a project is worth pursuing based on the net present value (NPV) and benefit-cost ratio (BCR).

## How to Use the Cost Benefit Analysis Calculator

Follow these steps to conduct a cost-benefit analysis:

- Enter the total costs of the project in USD. This includes all expenses related to the project, such as materials, labor, and other resources.
- Input the total benefits of the project in USD. This includes all expected monetary gains or savings from the project.
- Optionally, you can input the time period (in years) for the analysis, along with a discount rate (percentage) to account for the time value of money.
- Click the 'Calculate CBA' button to see the net present value (NPV) and benefit-cost ratio (BCR) of the project.

### CBA Formula

The two key calculations in cost-benefit analysis are:

**Net Present Value (NPV):***NPV = (Benefits / (1 + Discount Rate)^Years) - Costs***Benefit-Cost Ratio (BCR):***BCR = Total Benefits / Total Costs*

### Example Calculation

For example, if a project has total costs of $50,000 and expected total benefits of $80,000 over 5 years with a discount rate of 5%, the NPV and BCR would be:

**NPV = ($80,000 / (1 + 0.05)^5) - $50,000 = $11,292.61**

**BCR = $80,000 / $50,000 = 1.6**

A BCR greater than 1 indicates that the project is financially viable.