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Incremental Cost Effectiveness Ratio Calculator

Work out incremental cost effectiveness ratio instantly with clear inputs, formula shown and shareable results.

About Incremental Cost Effectiveness Ratio Calculator

Divides the difference in cost by the difference in effect between two options and names the quadrant of the cost-effectiveness plane.

Formula

ICER

ICER = (cost of new - cost of comparator) / (effect of new - effect of comparator)

Worked example

With the default values below, Incremental Cost Effectiveness Ratio Calculator returns Incremental cost-effectiveness ratio of $27,272.73. Change any input above and every figure here is recalculated in your browser.

Inputs used

Cost of the new optionaccepts 0–100,000,000
50,000
Cost of the comparatoraccepts 0–100,000,000
20,000
Effect of the new optionaccepts 0–100 QALYs
5.2 QALYs
Effect of the comparatoraccepts 0–100 QALYs
4.1 QALYs

Results

Incremental cost-effectiveness ratio
$27,272.73
Incremental cost
$30,000.00
Incremental effect
1.100 QALYs
Cost-effectiveness plane quadrant
Trade-off — more effective at additional cost

Step by step

  1. 1Values used
  2. 2ICER
  3. 3Incremental cost-effectiveness ratio= 27,272.73
  4. 4Incremental cost= 30,000.00
  5. 5Incremental effect= 1.100 QALYs
  6. 6Cost-effectiveness plane quadrant= Trade-off — more effective at additional cost

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or compounding frequency into account.
  • Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

Why can an ICER be misleading?

A negative ratio can mean either dominance or being dominated, so the quadrant must always be stated.

What is extended dominance?

When a third option gives more effect at a lower ICER, ruling out an intermediate option in a sequential analysis.

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