Benefit-Cost Analysis | FEMA.gov

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Get the BCA Toolkit

Resources and support

Benefit-Cost Analysis (BCA) is a method of determining the potential benefits of a hazard mitigation project and comparing the benefits to the costs.

The result is the benefit-cost ratio (BCR). A project is considered cost-effective when the BCR is 1.0 or higher.

applicants and sub-applicants Must use FEMA approved methods and equipment. – as a BCA Toolkit – To demonstrate the cost-effectiveness of their projects.

Alternative cost-effectiveness method

On October 7, 2022, FEMA announced increased program access to communities for fiscal year 2022.

This increased support will benefit communities with challenges that meet the requirements of a benefit-cost analysis (BCA) when receiving funding through the Hazard Mitigation Assistance (HMA) grant programs.

Read the note

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How to meet FEMA’s cost-effectiveness criteria

There are two ways to comply with FEMA’s cost-effectiveness requirements.

1. Complete the full BCA

Users perform a full BCA by entering document values ​​into the BCA Toolkit, which calculates the benefit-cost ratio.

The results are provided as an appendix to the grant project sub-application.

See details on how to complete the full BCA

Get the BCA Toolkit

FEMA has developed a BCA Toolkit to conduct a cost-effectiveness analysis of its support programs for pre-disaster and post-disaster mitigation.

Uses BCA Toolkit Cost-effectiveness guidelines for the Office of Management and Budget and FEMA-approved methods and tools to complete the benefit-cost analysis.

BCA Toolkit Privacy Statement

FEMA will not view, collect, or store any data you submit to the BCA Toolkit unless the file is part of a Hazard Mitigation Assistance (HMA) or Public Assistance (PA) project application. All data you enter into the BCA Toolkit is stored in a Microsoft Excel file, not on the FEMA website or server.

The BCA Toolkit uses a standardized flyer application programming interface (API) for property address lookups. The Leaflet API may use your IP address for geographic location purposes, but does not collect any personal information. FEMA does not support any non-federal government entities or products.

Find resources and support

  • Training: Introduction to Benefit-Cost Analysis (E/L0276)
    Classroom courses consist of a student guide, instructor guide, and visuals.
  • Sources
    Download Precalculated Benefits, BCA Guide, Ecosystem Services and other support documents.
  • News and notes
    Review BCA-related updates, view release schedules, and access the BCA Toolkit release notes.
  • contact us
    • BCA Toolkit Help
      • Email questions to [email protected]
      • Or call the free phone line 1-855-540-6744
      9:00 am to 5:00 pm ET | Monday to Friday
      Note that the BCA Helpline cannot evaluate or perform cost-benefit analyses.
    • Get support in performing or evaluating a BCA
      For assistance in performing or evaluating a BCA, or for answers to eligibility or policy questions, please contact your State Disaster Reduction Officer.

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