Cost per Beneficiary
Average cost to deliver services to one beneficiary, measuring programme efficiency
What is Cost per Beneficiary?
Cost per beneficiary is the average programme delivery cost for each person reached. It shows how efficiently a charity delivers its services.
Funders often ask for it, but it needs care, since cheaper is not always better if it means less impact.
How this KPI is measured
- Function
- Operations & Supply Chain
- Sub-function
- Service Delivery
- Industry
- Not-for-Profit / Charity
- Type
- Lagging
- Impact
- Efficiency
- Unit
- $
- Measurement frequency
- Quarterly / Annual
- Formula
- Total programme delivery costs / Number of beneficiaries reached
How to calculate it
Divide total programme delivery costs by the number of beneficiaries reached.
For example, if a programme cost 500,000 and reached 2,000 people, the cost per beneficiary is 250.
Use consistent rules on which costs are included, and compare only programmes with similar aims and intensity of support.
Where it is used
Explaining efficiency to funders
Show cost of reach.
Planning budgets
Estimate cost of expansion.
Comparing delivery methods
Test approaches.
How to improve it
Tips and common mistakes
- Lowest cost is not the goal. Effectiveness matters.
- Programmes for people with complex needs cost more.
- Be transparent about what is included.
More Operations & Supply Chain kpi library
Build better plans, faster
Join the waitlist for early access to curated insights, flexible templates, and rapid iteration across strategy, planning, and project management.