Free guide
Cost-per-Beneficiary and Value-for-Money Guide for Donor Proposals
How to calculate a defensible cost per beneficiary and present value for money using the economy, efficiency, effectiveness and equity framework used by many funders.
PDFUpdated 30 September 2026Costing · Impact evaluation
What's inside
- The 4Es — economy, efficiency, effectiveness and equity — and cost-effectiveness
- How to define and count beneficiaries without double counting
- How to calculate cost per beneficiary, including shared costs
- Indicators for each of the 4Es
- How to write a value-for-money section for a proposal or report
- Common mistakes reviewers notice
Key points
- 01Define a beneficiary once, in writing, and apply the same definition everywhere.
- 02Include shared and indirect costs; leaving them out understates the true cost.
- 03Cost per beneficiary measures efficiency; value for money also needs effectiveness and equity.
- 04Compare unit costs only with programmes that use the same definitions.
Frequently asked questions
What are the 4Es of value for money?
Economy (buying inputs of the right quality at the right price), efficiency (converting inputs into outputs), effectiveness (outputs achieving the intended outcomes) and equity (reaching the people who most need the programme).
Should I use total or unique beneficiaries?
Use unique beneficiaries for a cost per beneficiary, and report contacts or services separately. Counting the same person several times makes the cost per beneficiary look lower than it is.
Is a lower cost per beneficiary always better?
No. A lower cost can reflect a lighter intervention, easier-to-reach groups or lower quality. It should always be read alongside results and reach.
Need this done properly?
This guide explains the method. If you would rather have the analysis done for you — with local data, independent quality control and a report you can defend — we can help.
Need this done properly?
Tell us about the decision you need to support. We will propose a scope, timeline and price.