How do I measure training ROI?

Training ROI tells you whether learning pays off. The basic formula:

ROI (%) = (Benefit of training − Cost of training) ÷ Cost of training × 100

The hard part isn't the maths — it's measuring the benefit. Nearly 40% of learning leaders admit they don't know how their measurement reflects real impact. A practical approach:

1. Define the outcome first — faster onboarding, fewer errors, higher sales, better retention, lower compliance risk.
2. Baseline it — measure that metric before training.
3. Train, then measure the same metric again.
4. Estimate the value of the change (e.g. time saved × wage, or errors avoided × cost each).
5. Compare to cost — platform, content, and people's time.

Not every benefit is purely financial — reduced compliance risk and improved confidence matter too. The key is to decide what success looks like before you start, then let your LMS supply the completion and assessment data. Ask us about our training-ROI template to structure your own calculation.