Benefit-Cost Analysis | FEMA.gov
Benefit-Cost Analysis (BCA) is a method that determines the future benefits of risk reduction from a risk mitigation project and compares those benefits to its costs. The result is a benefit-cost ratio (BCR). A project is considered profitable when the BCR is equal to or greater than 1.0. Applicants and sub-applicants must use FEMA-approved methodologies and tools, such as the BCA Toolkit, to demonstrate the cost-effectiveness of their projects.
News and Announcements
Pre-calculated acquisition benefit is now available for recurring loss and severe recurring loss properties
FEMA has established a precalculated benefit for the acquisition of a Repetitive Loss (RL) or Severe Repetitive Loss (SRL) property, as defined by the National Flood Insurance Program (NFIP) or Flood Insurance Program. Flood Mitigation Assistance (FMA). The precalculated benefit amount is $323,000, equal to the precalculated benefit amount for acquisitions in the Special Flood Hazard Area (SFHA). For more information, see the memorandum.
The pre-calculated benefit of the hospital generator is now available
FEMA has established a precalculated benefit for certain hospital generator projects. Pre-calculated benefits for a hospital generator project are $6.95 per gross hospital building square meter (BGSF) in urban areas, including most suburban areas, and $12.62 per BGSF in hospital in rural areas. For more information, including how to determine whether a hospital is in an urban or rural area, see the Hospital Generator Pre-Calculated Benefits Memorandum.
Benefit-Cost Analysis Toolkit
Due to Microsoft updates, users with older versions of Microsoft Windows and Excel (2013 and 2016) may experience functionality issues with the BCA Toolkit. If you are using an older version of Windows or Excel, FEMA recommends using the BCA Toolkit in Excel Online.
To help you perform an analysis within the required guidelines, you should use the BCA Toolkit, which is a calculator developed using FEMA-approved methodologies and tools to show the profitability of your projects. Perform your CBA early in the project development process to ensure that you will meet the eligibility criteria for profitability.
BCA Toolkit Privacy Statement
FEMA does not see, collect, or store any of the data you enter into the FEMA BCA Toolkit unless the file is submitted as part of a project request for risk mitigation assistance ( HMA) or Public Assistance (AP). All information you enter into the BCA Toolkit is stored in the Microsoft Excel file on your computer or server and not on FEMA’s website or server.
The BCA Toolkit uses a Leaflet application programming interface (API) for searching and normalizing property addresses. The Leaflet API may use your IP address for geolocation purposes, but does not collect any personal information. FEMA does not endorse any non-federal government entity or product.
To streamline the grant application process, FEMA has released pre-calculated analyzes for several eligible projects.
Pre-calculated benefits and baseline costs are not intended to determine actual project costs or serve as detailed project cost estimates. Cost estimates for individual projects should be based on industry standards, vendor estimates, or other acceptable sources. Projects must still meet all other grant requirements.
Get help doing a benefit-cost analysis
The CCA Reference Guide is the primary guide for performing a benefit-cost analysis. It provides an overview of:
- Benefits and costs
- How to use the software to obtain a benefit-cost ratio for a single project or several projects
- Information on pre-calculated benefits
FEMA offers in-class and online independent study courses for FEMA, state, local, territory, and tribal personnel to learn the fundamentals of BCA.
To view upcoming offers and register for the BCA In-Class course (E0276), visit FEMA Training Site and search the course catalog for “Benefit-Cost Analysis”. You can also download the training materials used in the classroom course.
FEMA’s BCA Helpline is available to provide assistance using the BCA Toolkit, including resolving technical issues. The BCA Helpline cannot review or perform a benefit-cost analysis. For assistance in reviewing or performing the BCA, or to ask eligibility or policy questions, please contact your local Risk Mitigation Officer.
The BCA Helpline hours of operation are 9:00 a.m. to 5:00 p.m. EST, Monday through Friday. Email your questions to [email protected] or call toll-free at 1-855-540-6744.