123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Education >> View Article

Training Roi Calculator

Profile Picture
By Author: kim valerio
Total Articles: 118
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Assessing training effectiveness often entails using the four-level model developed by Donald Kirkpatrick (1994). According to this model, training evaluation should always begin with reaction to the training (level one), and then, as time and budget allows, should move sequentially through learning, transfer, and results – levels two, three, and four. Information from each prior level serves as a base for the next level’s evaluation. Thus, each successive level represents a more precise measure of the effectiveness of the training program, but at the same time requires a more rigorous and time-consuming analysis.
The Fifth Level of Evaluation

Kirkpatrick’s four-level model, however, does not require a specific cost savings to be ascertained.
To obtain a true return on investment (ROI) valuation, the cost savings of the training program are compared to the cost of implementing the training program. According to Phillips (2005), this process moves Kirkpatrick’s four-level model to the next level. During the fifth level of evaluation, Level 4 data is collected, converted to monetary values, and compared to the cost of the program to denote the return on the training program’s investment..
ROI Calculation

The ROI formula, according to Phillips (2005), is the annual net program benefits divided by program costs, where the net benefits are the monetary value of the benefits minus the costs of the program. Phillips (2005) ROI formula is as follows:

ROI (%) = Benefits – Costs x 100 ÷ Costs

As an example, let’s assume that the benefits of a project management training program, isolated from other factors occurring within the organization, are $350,000.
Let’s also assume that the total cost of the program is $125,000.
The net program benefits are $350,000 – $125,000 = $225,000.
Following the formula above:
ROI = $225,000/$125,000 (1.8) x 100
ROI = 180%; thus for every $1.00 invested, $1.80 is returned after the costs of the project management training program are recovered.
ROI Calculator

The ROI Calculator is designed to help you calculate the ROI of a training program.

If you want to find out more details about career development, we can help you out on this concern. You can go to this website for more details.

Total Views: 122Word Count: 347See All articles From Author

Add Comment

Education Articles

1. Togaf - Enriching And Empowering Lives
Author: Nitesh Prasad

2. Vfx Courses In Pune – Arena Animation Tilak Road
Author: Arena Animation Tilak Road

3. How Digital Marketing Is Important To E-commerce Websites?
Author: SUJATA KALE

4. Best Cyber Security Career 2020 Roadmap For It Professionals
Author: Infosavvy

5. Last One Month Strategy For Neet 2020
Author: Ajay Dulgach

6. Impacts Of Covid-19 On The Website Designing Development Companies
Author: RIYA SARODE

7. Can Blockchain Technology Help To Grow Gdp ?
Author: Block chain council

8. What You Need To Do In Your Career When You Are 22 ?
Author: Rohit Chandiramani

9. Public Speaking - Tips To Look More Confident Even If You Are Not
Author: Voiceskills

10. Skills Studying Abroad Helps You Acquire
Author: Sushil Sukhwani

11. Which Short Term Online Certification Course You Should Pursue Now
Author: Prerna Mehta

12. Paramedical Courses In Dehradun
Author: Manish Chamoli

13. Amazon Competitor Analysis | Step By Step Guide For Beginners.
Author: Joel Lazrado

14. Top Blockchain Tools For Remote Work In A Period Of Covid
Author: Block chain council

15. The Most Effective Steps To Developing The Best Parent-school Relationship
Author: Neelima

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: