Project name: Choosing the Best Personal Finance Management App
Date: 10/12/2025 8:45:20 PM

TOPSIS as one of MCDM methods considers both the distance of each alternative from the positive ideal and the distance of each alternative from the negative ideal point. In other words, the best alternative should have the shortest distance from the positive ideal solution (PIS) and the longest distance from the negative ideal.

In this study there are 5 criteria and 4 alternatives that are ranked based on TOPSIS method. The following table describes the criteria

Characteristics of Criteria

name type weight
1Data securityPositive0.3
2Usability and user interfacePositive0.1
3Reporting featuresPositive0.2
4Subscription costNegative0.3
5Compatibility with other appsPositive0.1

The following table shows the decision matrix.

Decision Matrix

Data securityUsability and user interfaceReporting featuresSubscription costCompatibility with other apps
App A55573
App B45611
App C34141
App D23234

The Steps of the TOPSIS Method :

STEP 1: Normalize the decision-matrix.

The following formula can be used to normalize.

The following table shows the normalized matrix.

The normalized matrix

Data securityUsability and user interfaceReporting featuresSubscription costCompatibility with other apps
App A0.680.5770.6150.8080.577
App B0.5440.5770.7390.1150.192
App C0.4080.4620.1230.4620.192
App D0.2720.3460.2460.3460.77

STEP 2: Calculate the weighted normalized decision matrix.

According to the following formula, the normalized matrix is multiplied by the weight of the criteria.

The following table shows the weighted normalized decision matrix.

The weighted normalized matrix

Data securityUsability and user interfaceReporting featuresSubscription costCompatibility with other apps
App A0.2040.0580.1230.2420.058
App B0.1630.0580.1480.0350.019
App C0.1220.0460.0250.1390.019
App D0.0820.0350.0490.1040.077

STEP 3: Determine the positive ideal and negative ideal solutions.

The aim of the TOPSIS method is to calculate the degree of distance of each alternative from positive and negative ideals. Therefore, in this step, the positive and negative ideal solutions are determined according to the following formulas.

So that

where j1 and j2 denote the negative and positive criteria, respectively.

The following table shows both positive and negative ideal values.

The positive and negative ideal values

Positive ideal Negative ideal
Data security0.2040.082
Usability and user interface0.0580.035
Reporting features0.1480.025
Subscription cost0.0350.242
Compatibility with other apps0.0770.019

STEP4: distance from the positive and negative ideal solutions

TOPSIS method ranks each alternative based on the relative closeness degree to the positive ideal and distance from the negative ideal. Therefore, in this step, the calculation of the distances between each alternative and the positive and negative ideal solutions is obtained by using the following formulas.

The following table shows the distance to the positive and negative ideal solutions.

Distance to positive and negative ideal points

Distance to positive ideal Distance to positive negative
App A0.210.163
App B0.0710.256
App C0.190.112
App D0.1730.152

STEP 5: Calculate the relative closeness degree of alternatives to the ideal solution

In this step, the relative closeness degree of each alternative to the ideal solution is obtained by the following formula. If the relative closeness degree has value near to 1, it means that the alternative has shorter distance from the positive ideal solution and longer distance from the negative ideal solution.

The following table shows the relative closeness degree of each alternative to the ideal solution and its ranking.

The ci value and ranking

Ci rank
App A0.4373
App B0.7841
App C0.3714
App D0.4672

The following figure shows the ci values.

The ci value