Cost-benefit analysis identification worksheet

List all costs and benefits before deciding valuation methods and their basis. Record difficult-to-monetize items outside the table and always state why they were omitted.

When to use this worksheet and what completion involves Fictional completed example

EvalCompass Worksheet

Cost-benefit analysis identification worksheet

Method: Cost-Benefit Analysis

List all costs and benefits before deciding valuation methods and their basis. Record difficult-to-monetize items outside the table and always state why they were omitted.

Basic information

Record the information underlying the analysis.

Completed example for this section (fictional)

This fictional example is for explanation. Adapt it to your own program. Your entries will not change.

Program or policy name: Consultation procedure improvements
Analytical perspective: society / government / particular group: Assume a societal perspective
Analysis period in years: 2 years
Social discount rate (%) and basis: 5% is illustrative. Check applicable guidance and evidence for an actual analysis.
Prepared by and date: Staff member A / July 2026 (fictional)

Reason for this entry: Do not present forecasts as actual results.

Program or policy name

Analytical perspective: society / government / particular group

Analysis period in years

Social discount rate (%) and basis

Prepared by and date

Writing tips and explanation for this section

About this section

Record the information underlying the analysis.

Do not present forecasts as actual results.

View the method explanation

Writing tips

Follow each field’s heading to record the program name, focus, period, and other details. Leave undecided matters clearly marked as unresolved.

Read the full fictional example

Identify costs

List initial investment, operation, maintenance, opportunity costs and negative externalities by year. Exclude unrecoverable sunk costs when comparing future alternatives. In ex-post evaluation, include additional resource costs arising during the evaluation period; do not exclude them merely because they have already been paid.

Completed example for this section (fictional)

This fictional example is for explanation. Adapt it to your own program. Your entries will not change.

Scroll horizontally to view the table

Cost item	Classification: direct / indirect / external	Unit and quantity	Annual amount	Notes and evidence
System and preparatory work	Direct resource costs	Complete initial implementation	JPY 1,000,000 at the start	Assume the full amount is an additional resource cost.

Reason for this entry: Check the distinction between expenditure and social resource cost in an actual analysis.

Scroll horizontally to view the table

Cost item	Classification: direct / indirect / external	Unit and quantity	Annual amount	Notes and evidence

Writing tips and explanation for this section

About this section

Check the distinction between expenditure and social resource cost in an actual analysis.

View the method explanation

Writing tips

Keep the information in each row aligned. Scroll wide tables horizontally to see every column.

Read the full fictional example

Identify benefits and valuation methods

List direct and indirect benefits and positive externalities, and record valuation methods and evidence.

Completed example for this section (fictional)

This fictional example is for explanation. Adapt it to your own program. Your entries will not change.

Scroll horizontally to view the table

Benefit item	Classification: direct / indirect / external	Valuation method: market price / willingness to pay / surrogate market / cannot monetize	Annual amount	Valuation evidence and source
Time savings for service users and staff	Direct benefits	Assumed monetary valuation of time	JPY 600,000 after both 1 and 2 years	Illustrative assumption. Evidence for measured time and unit values is needed.

Reason for this entry: Do not cite fictional unit values as market prices.

Scroll horizontally to view the table

Benefit item	Classification: direct / indirect / external	Valuation method: market price / willingness to pay / surrogate market / cannot monetize	Annual amount	Valuation evidence and source

Writing tips and explanation for this section

About this section

List direct and indirect benefits and positive externalities, and record valuation methods and evidence.

Do not cite fictional unit values as market prices.

View the method explanation

Writing tips

Keep the information in each row aligned. Scroll wide tables horizontally to see every column.

Read the full fictional example

Benefits difficult to monetize or excluded

Record benefits that could not be monetized and why, for disclosure of analytical limitations.

Completed example for this section (fictional)

This fictional example is for explanation. Adapt it to your own program. Your entries will not change.

Do not monetize a sense of security or improved access; describe who experiences which changes. Do not add convenience overlapping with time savings as a separate benefit.

Reason for this entry: Do not treat unmonetized value as zero.

Writing tips and explanation for this section

About this section

Record benefits that could not be monetized and why, for disclosure of analytical limitations.

Do not treat unmonetized value as zero.

View the method explanation

Writing tips

Use the example as a reference and record what you have established about your own program. Distinguish assumptions and unchecked matters from confirmed facts.

Read the full fictional example

Sensitivity analysis parameters

Set parameters and ranges that substantially affect the conclusion.

Completed example for this section (fictional)

This fictional example is for explanation. Adapt it to your own program. Your entries will not change.

Scroll horizontally to view the table

Parameter	Median	Optimistic value	Pessimistic value	Influence on NPV: high / medium / low
Annual benefits	JPY 600,000	JPY 700,000	JPY 500,000	High
Discount rate	5%	3%	7%	Medium

Reason for this entry: Sensitivity values are assumptions, separate from actual institutional rates.

Scroll horizontally to view the table

Parameter	Median	Optimistic value	Pessimistic value	Influence on NPV: high / medium / low

Writing tips and explanation for this section

About this section

Set parameters and ranges that substantially affect the conclusion.

Sensitivity values are assumptions, separate from actual institutional rates.

View the method explanation

Writing tips

Keep the information in each row aligned. Scroll wide tables horizontally to see every column.

Read the full fictional example

Completion check

Completed example for this section (fictional)

This fictional example is for explanation. Adapt it to your own program. Your entries will not change.

☑ Checked: Used a consistent perspective for costs and benefits, such as society or government
☑ Checked: Checked for double counting of benefits
☑ Checked: Distinguished future choices from ex-post evaluation and recorded the period, cost coverage and treatment of sunk costs
☑ Checked: Justified the discount rate and examined sensitivity to reasonable alternatives
☑ Checked: Separately recorded and disclosed unmonetized benefits
☑ Checked: Included sensitivity analysis results in the report

Reason for this entry: Comparing 5% and 3% in the illustrative formula gives NPV of approximately JPY 148,100 at 3%. Neither is an adoption decision for a real program.

Used a consistent perspective for costs and benefits, such as society or government
Checked for double counting of benefits
Distinguished future choices from ex-post evaluation and recorded the period, cost coverage and treatment of sunk costs
Justified the discount rate and examined sensitivity to reasonable alternatives
Separately recorded and disclosed unmonetized benefits
Included sensitivity analysis results in the report

Writing tips and explanation for this section

About this section

Comparing 5% and 3% in the illustrative formula gives NPV of approximately JPY 148,100 at 3%. Neither is an adoption decision for a real program.

View the method explanation

Writing tips

Read each item and check those you have confirmed. Do not use the fictional example’s checkbox states as findings about your own program.

Read the full fictional example

Before writing, check when to use the worksheet and what completion involves

Cost-benefit analysis identification worksheet is a worksheet for applying Cost-Benefit Analysis in meetings or individual work. For the overall duration of the method, use “Planning example, not a universal standard duration: 2–6 months when benefit measurement and data collection are included” as a reference, adjusting for scale and resources. Fill in what you know provisionally and leave unresolved matters as questions to check next.

When this worksheet is useful

When infrastructure projects such as roads, bridges and ports require evidence of social justification and investment priorities
When comparing regulatory or policy costs and benefits to demonstrate the relative efficiency of alternatives
When selecting the approach and scale with the highest benefits relative to costs among alternatives

Participants and preparation

Economics or public finance specialist leading the analysis, program staff or engineers providing cost information, and statistics or survey staff conducting willingness-to-pay surveys. An external reviewer is desirable.

Bring the materials used for decisions, existing data, and differing stakeholder views to help complete the worksheet.

Suggested order

1. Basic informationRecord the information underlying the analysis.
2. Identify costsList initial investment, operation, maintenance, opportunity costs and negative externalities by year. Exclude unrecoverable sunk costs when comparing future alternatives. In ex-post evaluation, include additional resource costs arising during the evaluation period; do not exclude them merely because they have already been paid.
3. Identify benefits and valuation methodsList direct and indirect benefits and positive externalities, and record valuation methods and evidence.
4. Benefits difficult to monetize or excludedRecord benefits that could not be monetized and why, for disclosure of analytical limitations.
5. Sensitivity analysis parametersSet parameters and ranges that substantially affect the conclusion.
6. Completion check

Signs the worksheet is ready for review

Cost and benefit table by item and year
NPV, B/C ratio and IRR calculation worksheet
Sensitivity analysis table for key parameters

Cautions for review

Double counting benefits. Counting both time savings and increased land prices as road improvement benefits can count the same benefit twice.
Estimating benefits optimistically and understating costs. Refer to comparable programs' actual results and estimation errors, and explain evidence-based adjustments and scenarios.
Reporting a single NPV without sensitivity analysis conceals uncertainty and gives decision-makers false confidence.

Guides to read before starting

Read a completed fictional example (your entries will not change)

Fictional example; not actual results

A fictional illustrative calculation with an initial cost of JPY 1,000,000, benefits of JPY 600,000 after both 1 and 2 years, no additional costs, and a 5% discount rate.

Basic information

Program or policy name: Consultation procedure improvements
Analytical perspective: society / government / particular group: Assume a societal perspective
Analysis period in years: 2 years
Social discount rate (%) and basis: 5% is illustrative. Check applicable guidance and evidence for an actual analysis.
Prepared by and date: Staff member A / July 2026 (fictional)

Reason for this entry: Do not present forecasts as actual results.

Identify costs

Scroll horizontally to view the table

Cost item	Classification: direct / indirect / external	Unit and quantity	Annual amount	Notes and evidence
System and preparatory work	Direct resource costs	Complete initial implementation	JPY 1,000,000 at the start	Assume the full amount is an additional resource cost.

Reason for this entry: Check the distinction between expenditure and social resource cost in an actual analysis.

Identify benefits and valuation methods

Scroll horizontally to view the table

Benefit item	Classification: direct / indirect / external	Valuation method: market price / willingness to pay / surrogate market / cannot monetize	Annual amount	Valuation evidence and source
Time savings for service users and staff	Direct benefits	Assumed monetary valuation of time	JPY 600,000 after both 1 and 2 years	Illustrative assumption. Evidence for measured time and unit values is needed.

Reason for this entry: Do not cite fictional unit values as market prices.

Benefits difficult to monetize or excluded

Do not monetize a sense of security or improved access; describe who experiences which changes. Do not add convenience overlapping with time savings as a separate benefit.

Reason for this entry: Do not treat unmonetized value as zero.

Sensitivity analysis parameters

Scroll horizontally to view the table

Parameter	Median	Optimistic value	Pessimistic value	Influence on NPV: high / medium / low
Annual benefits	JPY 600,000	JPY 700,000	JPY 500,000	High
Discount rate	5%	3%	7%	Medium

Reason for this entry: Sensitivity values are assumptions, separate from actual institutional rates.

Completion check

☑ Checked: Used a consistent perspective for costs and benefits, such as society or government
☑ Checked: Checked for double counting of benefits
☑ Checked: Distinguished future choices from ex-post evaluation and recorded the period, cost coverage and treatment of sunk costs
☑ Checked: Justified the discount rate and examined sensitivity to reasonable alternatives
☑ Checked: Separately recorded and disclosed unmonetized benefits
☑ Checked: Included sensitivity analysis results in the report

Reason for this entry: Comparing 5% and 3% in the illustrative formula gives NPV of approximately JPY 148,100 at 3%. Neither is an adoption decision for a real program.

Common errors in judgment

Assuming the highest benefit–cost ratio is always best

How to revise: Compare scale, budget, net benefits and non-monetary impacts together.

Reason: The ratio does not capture all net value generated or all aspects of equity.

Adding a cash transfer as a net benefit to society

How to revise: Align whose costs and benefits are counted and distinguish transfers.

Reason: The same payment is a transfer between payer and recipient.

Editorial and checking information

Content updated: 2026-10-07Source checked: 2026-09-13 (includes AI cross-checking)No documented human reviewIncludes fictional examplesEditorial policy and scope of checking Cite this page Report a correction

References and checked sections

The Green Book (2026)
HM Treasury · 2026
Section consulted
Chapter 6: Shortlist appraisal / Summary metrics of social value
How it relates to the text
Compare costs and benefits at present value, and separately report unmonetized impacts and important assumptions.
Source checked: 2026-09-13 (includes AI cross-checking)

How to cite this page

EvalCompass Editorial Team. “Cost-benefit analysis identification worksheet”. EvalCompass, updated 2026-10-07. https://evalcompass.jun-nakatani.com/en/worksheets/cba/

Add the date you accessed the page. Text created by this site is available under CC BY 4.0. Quotations, external materials, and bundled fonts have their own terms of use. When reusing content, credit the source, link to the license, and indicate any changes.

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Change history

2026-09-13 — Checked sources for definitions and applicability conditions, and added fictional examples, reasons for judgments and examples for every worksheet field. Revised unverified claims about history and adoption. Also reviewed existing procedures and cautions, and adjusted fixed participant counts and thresholds and generalizations about institutions. Preserved field positions, types and counts while revising fixed conditions and thresholds in the forms.
2026-10-07 — Correction based on independent content review (content-check-causal). Revised the worksheet to distinguish excluding sunk costs for future choices from including additional resource costs within the period covered by ex-post evaluation.