The short answer
Training ROI is net programme benefit divided by fully loaded programme cost, times 100. Count fees, participants’ time and admin as cost; value the expected improvement in money, then reduce it by the share caused by training and by your confidence in the estimate. Above 0% the programme pays for itself; payback shows how fast.
1. Cost of the programme
2. Benefit you expect
| Total cost | ₹4,59,975 (fees ₹1,99,975 + time ₹2,40,000 + other ₹20,000) |
|---|---|
| First-year benefit, adjusted | ₹4,83,000 (gross ₹13,80,000 × 50% × 70%) |
| Net benefit | ₹23,025 |
| ROI | 5% |
| Benefit-cost ratio | 1.05 : 1 |
| Payback | 11.4 months |
Estimates only. The adjustments for share caused by training and confidence follow the Phillips ROI method, so the result errs on the cautious side. Measure the real change at about 90 days to replace the estimate with evidence.
How the calculator works
It follows the Phillips ROI method, the most widely used way to put a money figure on training:
- Total cost = people × course fee + people × hours in training × loaded hourly cost + other costs.
- Gross benefit = people × hours saved per week × working weeks × loaded hourly cost.
- Adjusted benefit = gross benefit × share caused by training × confidence.
- ROI = (adjusted benefit − total cost) ÷ total cost × 100; payback = total cost ÷ adjusted benefit × 12 months.
Worked example (the starting figures)
25 managers take a ₹7,999 online course of 16 hours. Their time costs ₹600 an hour and admin adds ₹20,000. Total cost: ₹1,99,975 in fees + ₹2,40,000 in time + ₹20,000 = ₹4,59,975.
If each saves 2 hours a week for 46 weeks, the gross benefit is ₹13,80,000. Crediting half to the training at 70% confidence gives ₹4,83,000. Net benefit ₹23,025; ROI about 5%; payback about 11.4 months. Notice that the participants’ time cost more than the course.
Make the estimate stronger
- Measure the skill before the programme and again at about 90 days, on the same instrument, so the benefit is observed rather than assumed.
- Use a comparison group that has not yet been trained to estimate the share caused by training.
- Ask participants’ managers, not only participants, how much time or quality changed.
Questions people ask next
What is the formula for training ROI?
ROI (%) = (monetary benefits − programme costs) ÷ programme costs × 100. This is the Phillips ROI formula. Benefits are first adjusted for the share caused by the training (isolation) and for confidence in the estimate.
What costs should be included in training ROI?
All of them: course or facilitator fees, the participants’ time at their loaded hourly cost, travel or venue if any, LMS and admin time, and design or licence costs. Participants’ time is often the largest cost and the one most often left out.
What is a good training ROI?
Any ROI above 0% means the programme returned more than it cost. Many organisations look for a payback within 12 months. Because benefits are estimates, show the assumptions and re-measure behaviour at about 90 days.
What is the difference between ROI and benefit-cost ratio?
The benefit-cost ratio (BCR) divides benefits by costs: 1.5 : 1 means every unit spent returned 1.5. ROI subtracts the cost first: the same programme has an ROI of 50%.
Does this calculator store my numbers?
No. The arithmetic runs in your browser and nothing is sent to Bodhih.