M7 · Cost-effectiveness

ICER & net benefit

Compare two options on cost and QALYs. Read the ICER, place the result on the cost-effectiveness plane, and see how net benefit gives a cleaner verdict against a threshold you set.

Enter both options to compare.

ΔCost

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ΔEffect

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ICER (per QALY)

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Net monetary benefit

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Net health benefit

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Cost-effectiveness threshold λ (£ per QALY)£30,000

Shaded band: NICE's £25,000–£35,000 reference range. Marker: an empirical opportunity-cost estimate, ≈£13,000.

Enter both options to see the comparison.

Cost-effectiveness plane

More effective, more costlyMore effective, cheaper (dominant)Less effective, more costly (dominated)Less effective, cheaper–0––0–ΔEffect (QALYs) →

The same ICER can sit above the line in one quadrant and below it in another — position, not just the ratio, decides.

Net benefit vs threshold

£0£25,000£50,000–£0–Threshold λ →

Net benefit is linear in the threshold. Where it crosses zero is the ICER — below and above it the verdict flips. In a dominant/dominated case the line never crosses zero.

How it's computed

ICER = ΔCost / ΔEffect = £– / – = £– per QALY
At threshold λ = £–/QALY:
NMB = λ·ΔE − ΔC = £–×– − £– = £–
NHB = ΔE − ΔC/λ = – − £–/£– = – QALYs
Decision NMB – 0 → – at £–/QALY

Learn the theory →