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5 Types of Financial Feasibility

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Financial feasibility is the degree to which a strategy, program, project or change is financially possible and attractive. This can be estimated using several common methods:

Cost Estimates

In some cases, financial feasibility is based on cost estimates alone. For example, if an Australian student wants to do a university degree in Europe they may be primarily concerned with whether or not they can afford it.

Return on Investment

Estimating both cost and returns by calculating return on investment.

Payback Period

Modeling how long it takes an investment to break-even by calculating a payback period.

Net Present Value

Calculating the cash flows that will be generated by a strategy discounted to net present value.


Some investments have financial costs but non-financial returns. For example, a non-profit organization that wants to improve conditions in a refugee camp may compare approaches by how many lives they save given fixed financial constraints.
Overview: Financial Feasibility
The degree to which a strategy, program, project or change is financially possible and attractive.
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