healtheconomics.wiki

ICER Interpretation Lab

Compare an intervention with a comparator, locate the result on the cost-effectiveness plane, and see why the ICER must be interpreted with its underlying cost and health differences.

Apply the comparison correctly

Enter expected costs and health effects for the same population, perspective and time horizon. The lab calculates intervention minus comparator, checks dominance, and uses incremental net monetary benefit (INMB) to give a consistent threshold-based interpretation across all four quadrants.

Intervention
Currency units per person
QALYs per person
Comparator
Same price basis
Same outcome measure
Decision contextUse a value appropriate to the jurisdiction and decision

Results

Incremental cost (ΔC)—
Incremental effect (ΔE)—
Quadrant—
Dominance—
ICER—
INMB—
Enter values and calculate to see a conditional interpretation.

Cost-effectiveness plane

Cost-effectiveness planeA chart of incremental health effect on the horizontal axis and incremental cost on the vertical axis. The calculated comparison is plotted with a threshold line.
Calculated comparisonThreshold line

Interpretation safeguard: A ratio sign is never enough. A negative ICER can represent either a dominant intervention or a dominated intervention.

Method and assumptions
ΔC = intervention cost − comparator cost
ΔE = intervention effect − comparator effect
ICER = ΔC ÷ ΔE
INMB = (threshold × ΔE) − ΔC
  • The example values are synthetic and do not describe a real technology or decision.
  • The costs and effects must use consistent populations, perspectives, time horizons and price bases.
  • The tool suppresses the ICER when strict dominance settles the comparison or when incremental effect is zero or too close to zero for a stable ratio.
  • A positive INMB supports the intervention on cost-effectiveness grounds at the stated threshold; it does not establish affordability or guarantee adoption.
  • This educational tool does not model uncertainty, budget impact or patient-level outcomes and must not be used as a complete reimbursement analysis.