What is the term for comparing a program's benefits to its net savings?

The term for comparing a program's benefits to its net savings is cost-benefit analysis. This method evaluates the economic worth of a project or program by considering the total expected benefits relative to the total expected costs. The aim is to determine whether the investment is justified, where benefits are typically measured in monetary terms.

In a cost-benefit analysis, benefits are quantified in financial terms and then compared against costs to assess profitability and efficiency. This approach helps decision-makers understand the value of programs in a straightforward manner, making it easier to allocate resources effectively based on expected returns.

Other methods, like cost-effectiveness analysis, focus on comparing the relative costs of achieving specific outcomes. Formative evaluation emphasizes the development and improvement of programs during their implementation phase rather than providing a final assessment of outcomes. Program evaluation encompasses a broader range of evaluation methods, which may include both cost-benefit analysis and cost-effectiveness analysis, but does not specifically refer to the comparison of benefits and savings as defined in this context.