## Three-Point Estimation Calculator – Triangular & PERT Beta Distribution

Three-Point estimating is a common estimation technique in projects that are applying the PMI methodology. While other estimation techniques are often deemed to be more accurate, three-point estimating supplemented with the triangular or beta (PERT) distribution is useful if the experience with or benchmarks of comparable projects are not available. Use this calculator to determine …

## Internal Rate of Return (IRR) vs. ROI – What Are the Differences?

If you are working on a cost-benefit analysis, you will almost inevitably come across ROI and IRR. Return on Investment (ROI) and Internal Rate of Return (IRR) are among the most popular success measures for projects and investments. They are also mentioned in the Project Management Institute’s Body of Knowledge (source: PMBOK®, 6th ed., part …

## Return on Investment (Single & Multi-Period ROI): Formulae, Examples, Calculator

Return on Investment is one of the most common indicators used for the cost-benefit analysis. This is probably because of its simplicity and understandability of the information conveyed. In Project Management, it is a success measure suggested by the Project Management Institute (PMI; source: PMBOK®, 6th ed., part 1, ch. 1.2.6.4, p. 34). However, the …

## Earned Value Analysis & Management (EVA/EVM) – Definition & Formulae

Managing cost, performance and progress is one of the most important responsibilities of a project manager. In practice, this is usually one of the areas that receive a lot of attention by project sponsors, steering committees and other stakeholders, given that the budget is often one of the relevant constraints of a project. Despite its …

## Cost-Benefit Analysis for Business Cases (Definition, Steps, Example)

When you prepare a project in line with PMI or other established project management methodologies, you will have to create a project business case. This business case is usually a study on the expected qualitative and financial benefits of a single project or different project options. An essential part of this process is the cost-benefit …

## Payback Period Calculator – PbP for Even & Uneven Cash Flows

Do you need to calculate the number of periods an investment requires to reach the break-even point? The Payback Period (PbP or PBP) indicates the period in which a full repayment or amortization of an investment is achieved. This indicator is used not only for the assessment of project options and business cases in project …

## Benefit Cost Ratio (BCR) Calculator

Do you need to compare the value of different investment alternatives, project scenarios or assets? If so, you will find this BCR calculator useful. It calculates the benefit-to-cost ratio based on your cash flow forecast and your discount rate. Introduction to the BCR Calculator In cost benefit analyses, the BCR is one of the common …

## What Is the Benefit Cost Ratio (BCR)? Definition, Formula, Example.

The Benefit Cost Ratio (BCR), also referred to as Benefit-to-Cost Ratio is an indicator that is typically used within a cost benefit analysis. In project management, the benefit cost ratio can support the cost-benefit analysis of a business case. The PMI Project Management Body of Knowledge lists the BCR under project success measures, next to …

## What Is the Net Present Value (NPV) & How Is It Calculated?

When you perform a cost-benefit analysis and need to compare different investment alternatives with each other, you might consider using the net present value (NPV) as one of the profitability indicators. In project management, the NPV is commonly used and also listed in PMI’s Project Management Body of Knowledge (source: PMBOK®, 6th edition, part 1, …

## Net Present Value (NPV) Calculator

Whether you need to assess the value of different project alternatives, investment options or assets, you will likely want to use an NPV calculator. Fill in the discount rate, the investment, your projected cash flows and the estimated residual value (if any). The calculator will discount the net cash flows based on your parameters and …