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Beginner
Basics >
Calculating
e-Learning ROI
by
Kevin Kruse
The return-on-investment
analysis, commonly called ROI, is one of the more popularly
used financial measures. It simply states the return on the
training investment in percentage terms. The exercise below
is based on a fictitious case of a Web-based sales training
program that cost $425,000 to develop and deliver, and which
increased sales by $975,000 in the first year. The figure
below details these calculations.
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Return-on-Investment
(ROI) Ratio
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(Total
Benefits - Total Costs) divided by Total Costs
x 100 = ROI
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($975,000
- $425,000) divided by $425,000 x 100 = 129%
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One
Year ROI = 129%
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