Use this calculator to estimate the return on investment (ROI) of your training programs. Ideal for HR professionals and business managers looking to optimize training budgets and demonstrate the value of training investments.
Calculator
Results
Data Source and Methodology
All calculations are based strictly on the data and formulas provided by the TJ Taylor ROI Resource.
The Formula Explained
ROI Formula: \[ ROI = \frac{{\text{Additional Revenue} - \text{Training Cost}}}{\text{Training Cost}} \times 100 \]
Glossary of Variables
- Training Cost: The total cost incurred for the training program.
- Productivity Gain (%): The percentage increase in productivity as a result of the training.
- Additional Revenue: The additional revenue generated due to increased productivity.
Frequently Asked Questions (FAQ)
What is ROI?
ROI, or Return on Investment, measures the gain or loss generated by an investment relative to its cost.
How can training impact productivity?
Training can enhance skills, improve efficiency, and boost employee morale, leading to increased productivity.
How do I calculate the additional revenue?
Estimate the increase in revenue resulting from increased productivity or skills acquired during the training.
Are there any hidden costs to consider?
Consider indirect costs such as time spent, travel expenses, and resource allocation when calculating total training costs.
What if the ROI is negative?
A negative ROI indicates that the training cost exceeds the revenue gained, suggesting a need to reassess the training program's effectiveness.