Every meaningful procurement decision is a trade-off — switch supplier, adopt a system, consolidate a category — and the honest way to judge it is to lay the costs and the benefits side by side. A cost-benefit analysis does exactly that: it separates the up-front costs from the ongoing ones, puts a value on the benefits, and nets them out into a single figure you can defend. This free Excel template structures both sides of the ledger, totals them automatically and shows whether an option leaves the organisation better off.
Why separate one-off from recurring
A decision can look expensive in year one yet be cheaper over its life, or vice versa. Splitting one-off costs from recurring ones — and doing the same for benefits — reveals that timing, so a heavy set-up cost does not sink an option that pays for itself over several years.
Netting costs against benefits turns a debate into a number. Instead of arguing whether a change is worth it, stakeholders can see the net position and focus on the assumptions behind it.
Working through the analysis
Populate both sides of the ledger:
- List the one-off costs — implementation, transition, training — in the first block.
- Add the recurring annual costs the option will carry.
- Quantify each benefit: hard savings, productivity gains and avoided costs.
- Read the automatic net position for year one and across the multi-year view.
- Record your assumptions and any benefits you could not put a number on.
Keeping the analysis credible
Be conservative with benefits and complete with costs — an over-optimistic case erodes trust when reality falls short. State every assumption so reviewers can challenge the inputs rather than the conclusion. Note the factors you could not quantify separately, and where two options are close on the numbers, let those qualitative factors inform the final call.
Download the Cost-Benefit Analysis Template
Free, editable Excel (.xlsx). Complete the form above and your download starts instantly.
Common questions
What is a cost-benefit analysis template?
It is a spreadsheet that lists the costs and the benefits of a decision, separates one-off from recurring items, and nets them into a single figure so you can judge whether an option leaves you better off.
How is the net position calculated?
The template totals all costs and all quantified benefits, then subtracts total cost from total benefit to show the net position for the first year and across a multi-year view.
What format is the cost-benefit analysis template in?
A Microsoft Excel (.xlsx) file with built-in totalling formulas and no locked cells. It also opens in Google Sheets and LibreOffice Calc.
Is this cost-benefit analysis template free?
Yes. Enter your work email above and the editable Excel file downloads automatically, free of charge.
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