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Quick answer: How do I calculate ROI for training?
- Formula — (Benefits − Costs) ÷ Costs × 100.
- Costs — fees, exams, time, admin.
- Benefits — time saved, errors avoided, hiring avoided.
- Isolate — estimate the share due to training.
- Models — Kirkpatrick levels + Phillips ROI.
Key takeaways
- Training ROI (%) = (Benefits − Costs) ÷ Costs × 100.
- Include employee time in costs; it's often the biggest item.
- Benefits come from time saved, quality, retention and avoided hiring.
- Kirkpatrick's four levels measure impact; Phillips adds ROI.
- Certifications provide a clear Level 2 (learning) measure.
The training ROI formula
Training ROI (%) = (Monetary benefits − Training costs) ÷ Training costs × 100
This is the core of the Phillips ROI Methodology, which adds steps to isolate training's effect from other factors and to convert results into money1.
Training ROI calculation example
| Item | Amount |
|---|---|
| Course licences (20 people) | $6,000 |
| Exam fees (20 × $150) | $3,000 |
| Employee time (20 people × 20 h × $25/h) | $10,000 |
| Admin and coordination | $1,000 |
| Total cost | $20,000 |
| Contractor spend avoided | $30,000 |
| Rework and errors reduced | $20,000 |
| Total annual benefit | $50,000 |
| ROI | (50,000 − 20,000) ÷ 20,000 × 100 = 150% |
Illustrative figures; use your own data.
The Kirkpatrick model
| Level | Measures | Example metric |
|---|---|---|
| 1. Reaction | Did learners find it useful? | Survey score |
| 2. Learning | Did they learn? | Certification pass rate |
| 3. Behaviour | Do they apply it? | Manager observation, tool usage |
| 4. Results | Did the business improve? | Cost, quality, revenue |
Source: Kirkpatrick Partners2.
Where training benefits come from
- Time saved on tasks.
- Fewer errors, incidents or rework.
- Lower contractor or consultant spend.
- Avoided hiring costs through internal promotion.
- Better retention.
- Revenue from new capabilities or partner status.
Prove it free: the tests that match this guide
Measure training with credible assessments, at zero cost. (Disclosure: Science of Apps publishes these tests.)
- Learning and Development CertificationCovers training needs analysis, learning design and evaluation.Start free test →
- Training and Development CertificationPlan training with measurable outcomes from the start.Start free test →
- Business Analytics CertificationAnalyse training results and convert them into ROI.Start free test →
Tips for credible training ROI
- Agree on metrics before training starts.
- Use a comparison group where possible.
- Be conservative: ask managers to estimate the share of improvement due to training.
- Report intangible benefits separately.
Lower costs, higher ROI
Reducing cost raises ROI. Free skill assessments and certifications, such as Science of Apps' 2,403 free tests, cut baseline assessment costs to zero. See also benefits of employee training.
Frequently asked questions
How do I calculate ROI for training?
ROI (%) = (monetary benefits − training costs) ÷ training costs × 100, including employee time in costs.
What is a good training ROI?
Any positive ROI means benefits exceed costs; many organizations look for clearly positive results over 12 months.
What is the Kirkpatrick model?
A four-level model for evaluating training: reaction, learning, behaviour and results.
What is the Phillips ROI model?
An extension of Kirkpatrick that adds a fifth level, ROI, converting results to money and isolating training's effect.
What is the training ROI formula?
Training ROI (%) = (Monetary benefits − Training costs) ÷ Training costs × 100 This is the core of the Phillips ROI Methodology, which adds steps to isolate training's effect from other factors and to convert results into money.
Sources
- ROI Institute: the Phillips ROI Methodology
- Kirkpatrick Partners: the Kirkpatrick Model
- Science of Apps: free online certifications
- Checked November 11, 2026. Figures that change — fees, salaries, prices — are reviewed every six months; if something is out of date, tell us.
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