Benefit Cost Analysis Tool

Compares the benefits of a water sensitive project with its costs, to assess whether it’s worthwhile.

Find out if your water sensitive project is worthwhile

The Benefit Cost Analysis (BCA) Tool compares the benefits of a water sensitive project with its costs, to assess whether it’s worthwhile.

You can use this Excel-based tool to:

  • develop a holistic business case for delivering water sensitive investments
  • assess investments for water sensitive cities
  • understand the distribution of costs and benefits between stakeholders.

It is part of the Investment Framework for Economics of Water Sensitive Cities (INFFEWS) economic evaluation package, which also includes the Value Tool.

The BCA Tool is flexible and easy to use

This structured and systematic process leads project stakeholders though key steps to define the project, identify project options, identify information requirements and gaps and undertake the BCA assessment.

It is based on sound economics and is fully consistent with Australian and state government economic assessment guidelines.

You’ll receive several outputs

The BCA Tool generates the following outputs:

  • a summary report of the BCA results, including the benefit cost ratio and net present value
  • ‘with project’ and ‘without project’ scenarios
  • sensitivity analysis results, including Monte Carlo and break-even analysis.

Supporting materials are available to help you

The following resources can help you understand and apply the BCA Tool:

  • Benefit: cost analysis and strategic decision making: This document covers BCA basics, guidance on strategic issues related to BCAs, and use of economic information including BCAs, in strategic decision making.
  • Rough BCA Tool – guidelines and spreadsheet: Use these resources to conduct a ‘rough BCA’. This very simple tool captures the essence of BCA, and it can be useful as a first step towards conducting a full BCA.
  • BCA Tool guidelines: This document explains the structure and elements of the BCA Tool; information requirements and judgements needed to apply the tool. There are also suggested strategies for obtaining data for different parts of the tool.
  • BCA Tool user guide: This document provides a step-by-step process for entering the required information into the tool. It includes a template for capturing the qualitative aspects of that information.
  • BCA Comparison Tool: This spreadsheet makes it easy to compare the results from BCAs for multiple projects, or different versions of the same project.
  • BCA Tool training resources includes a set of 10 training videos.
  • INFFEWS worked example - Princes Park Stormwater Harvesting: This report and associated BCA Tool spreadsheet demonstrates how to apply the tool to a real-world example.

And if you have any questions, you can email us at admin@crcwsc.org.au

Last updated: 25th May 2021