RICE stands for Reach, Impact, Confidence, and Effort. To score an item, multiply Reach (how many users will this touch in a given period?) by Impact (how much will it move the needle per user, rated on a defined scale such as 0.25–3) by Confidence (what percentage certain are you in those estimates, expressed as a decimal from 0 to 1), then divide by Effort measured in person-months. A feature touching 500 users, with high impact (2), 80% confidence, and 2 person-months of work scores 500 × 2 × 0.8 ÷ 2 = 400.
The formula is deliberately simple. Its power comes from forcing teams to make their assumptions explicit and comparable. A speculative moonshot with low confidence will be discounted automatically, while a quick, high-reach fix floats to the top without anyone having to argue for it.