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QALY and ICER Calculator

Free tool for health economics and HTA

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This free calculator estimates quality-adjusted life years (QALYs) and the incremental cost-effectiveness ratio (ICER) of a new health technology compared with an alternative. Enter the life years and utility of each option to get the QALYs, then the costs, to see the incremental cost, the QALYs gained and the cost per QALY gained.

1. QALYs for each option

QALYs = life years × utility (1 = full health, 0 = death). If you already have the QALYs, enter them directly in step 2.

New technology

Comparator

2. Costs, QALYs and ICER

New technology

Comparator

Incremental cost–
Incremental QALYs–
ICER (cost per QALY gained)–

Educational tool. An assessment for an HTA body needs a full model with uncertainty analysis.

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How to use the calculator

  1. Estimate the QALYs. For each option, enter the expected life years and the average utility, on a scale where 1 is full health and 0 is death. The calculator multiplies them. If you already have the QALYs from a model, enter them directly in step 2.
  2. Enter the costs. Use the total cost per patient over the same time horizon for both options.
  3. Add a threshold, if you have one. The calculator tells you whether the ICER is below or above it.

How to read the result

  • ICER. The extra cost for each QALY gained with the new technology.
  • Dominant. The new technology is more effective and less costly, so it is preferred without the need for an ICER.
  • Dominated. The new technology is less effective and more costly.

A real assessment for an HTA body uses a full model, with discounting, a defined time horizon and sensitivity analyses. This calculator is a quick way to understand the numbers, not a substitute for that model.

Frequently asked questions

What is a QALY?

A quality-adjusted life year combines length and quality of life. One year in full health equals one QALY.

What is an ICER?

The incremental cost-effectiveness ratio is the difference in cost between two options divided by the difference in QALYs.

What is the difference between cost-effectiveness and budget impact?

The ICER shows value for money; budget impact shows whether the health system can afford it. Read our article on cost-effectiveness analysis versus budget impact analysis.

At Clevidence, we build and adapt cost-effectiveness and budget impact models for HTA. Learn more about our health economics and outcomes research services.