Computing the Return on Investment (ROI) of Training

Computing the Return on Investment of Training Return on investment (ROI) is
determined by the following:

• Determine the total cost of training (e.g., training development cost, resources
cost, salaries of instructors, and participants).
• Determine the total value of the benefits achieved by the training (e.g., increased
production, lower waste).
• Determine the net benefit by subtracting the cost from the benefits.
• Determine the percentage of benefits over cost by dividing the cost into the
net benefits.
• Multiply the result by 100 to restate the result as a percentage.

Total Dollar Benefits – Cost of Training = Net Benefits
(Net Benefits / Costs) × 100 = ROI of Training