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# ICER Calculator: Your Tool for Healthcare Decision-making

## Introduction

The ICER (Incremental Cost-Effectiveness Ratio) calculator is a powerful tool used in the healthcare industry to make informed decisions on the cost-effectiveness of various treatments and interventions. This tool helps compare the cost and effectiveness of different healthcare strategies, making it an invaluable asset in health economics and policy decision-making.

## Understanding ICER

ICER is a statistic used in cost-effectiveness analysis to summarize the cost-effectiveness of a healthcare intervention. It’s calculated by taking the difference in cost between two possible interventions, and dividing by the difference in their effect. The lower the ICER, the more cost-effective a treatment is.

The formula for ICER is:

``````ICER = (Cost of Intervention B - Cost of Intervention A) / (Effectiveness of Intervention B - Effectiveness of Intervention A)
``````

This formula helps decision-makers understand the cost difference per unit of health outcome between two healthcare interventions.

## Using the ICER Calculator: An Example

Imagine you’re a healthcare provider considering two different treatments for a condition. Treatment A costs \$1000 and has an effectiveness of 0.5, while Treatment B costs \$1500 and has an effectiveness of 0.7.

Using the ICER calculator, you’d input these values and calculate the ICER as follows:

``````ICER = (\$1500 - \$1000) / (0.7 - 0.5) = \$2500
``````

This means that for each additional unit of effectiveness, Treatment B costs \$2500 more than Treatment A. Based on this result, the healthcare provider can make an informed decision on which treatment is more cost-effective.