Cost-Benefit Analysis (CBA)
Reference model
A structured comparison of costs and benefits over time to inform decision-making.
About this model
A systematic approach to estimating the strengths and weaknesses of alternatives in order to determine the best option.
Originator not stated.
How to read it
- Look for a positive net benefit to justify the investment.
- Check the payback period to understand how quickly the investment returns value.
What this does
Evaluates the financial implications of a decision by comparing the expected costs against the anticipated benefits, helping to determine the feasibility of a project or investment.
When to use it
Use it when you need to assess whether the benefits of a project outweigh its costs, making it a valuable tool for investment decisions.
Not when: Do not use it when qualitative factors are more important than quantitative ones, or when costs and benefits cannot be reliably estimated.
What happens next
Consider using a sensitivity analysis to understand the impact of varying assumptions on the CBA results.
Golden thread
Builds on ←
- Project Proposal
- Risk Assessment
Feeds into →
- Implementation Plan
Use this tool, free
Sign in to open the worksheet. Your work saves as you type, the AI can draft the parts you have not filled in, and you finish with an analysis and a 30/60/90-day action plan.
Drafted with AI and reviewed by Eccellere on 04/11/2026. Guidance, not advice: apply your own judgement.