Training ROI Calculator

How it is calculated

The tool uses the standard ROI formula: ROI % = (benefit − cost) / cost × 100. benefit_value is the total money value you attribute to the training, and training_cost is its full cost. The net benefit shown is simply benefit − cost, in dollars. Both amounts use the same currency and cover the same time frame.

The tool does not estimate the benefit for you; it only does the arithmetic on the two numbers you type, so the quality of the result depends on how carefully the benefit was valued. Cost must be above zero. A benefit smaller than the cost gives a negative ROI and a negative net benefit, and a benefit equal to the cost gives exactly 0%. The ROI is a ratio of net gain to cost, so it does not show how long the payback takes.

Common mistakes

• Entering only the course fee as the cost. Include trainer fees, materials, travel and the paid hours employees spent away from work, or the ROI will look better than it is.
• Putting the net benefit in the benefit field. The formula subtracts the cost itself, so enter the gross benefit, not benefit minus cost.
• Confusing an ROI of 50% with a benefit of 50% of cost. A 50% ROI means the benefit is 150% of the cost.
• Valuing the benefit from a few months of results but the cost over a different period. Match the period of benefit and cost.
• Counting benefits that are not caused by the training, such as a sales rise that came from a price cut. Only include what you can reasonably attribute to it.