A cost-benefit analysis (CBA) is an analysis used internally to evaluate all the potential costs and revenues that a company might generate from a project or opportunity. The outcome of the analysis will determine whether the project is financially feasible or if the company should seek other opportunities. A cost-benefit analysis should also factor in the opportunity cost into the decision-making process on whether to take or pass on a project.
A cost-benefit analysis is an examination of whether a project’s benefits outweigh its expenses. Managers in any business, from startups to large corporations, can use this process to predict whether an investment will provide them with profits or other positive results.
Businesses should use a cost benefit analysis (CBA) template for several reasons:
If you run a business or just want to make thoughtful financial decisions, consider calculating the cost-benefit analysis of changes you are thinking about implementing. Just follow the steps in the Excel template and you’ll have the information you need to make a thorough analysis. Here’s how to do a cost benefit analysis in Excel:
Step 1: Download cost benefit analysis template.
Step 2: Enter project information (company name, project name, project manager, start date and more).
Step 3: List out known expenses needed for the project.
Step 4: Input current pricing per listed expenses before starting the project.
Step 5: Input estimated new price after starting the project.
Step 6: Calculate future value by inputting present value of the project, interest rate, and project duration.
Step 7: Input the expected fiscal year return.
A dashboard will automatically populate from data entered into the cost-benefit analysis template. You can find more detailed instructions on how to use our cash benefit analysis template upon download.
A simple cost benefit analysis (CBA) template typically includes the following information: