LMS ROI Calculator

How is LMS ROI calculated?

To calculate LMS ROI, the following formula is used:

Consider two ROI forecasts because of differing costs in the first year and subsequent years. Key factors include:

• Number of employees. Affects software costs and overall training expenses.
• Training sessions. Offline sessions require additional costs; an LMS reduces this impact.
• Instructional designers. IDs influence content development costs, including tools and compensation.
• Face-to-face training costs. Includes trainer fees, travel, accommodations, and materials.
• Opportunity costs. Represents the time that employees spend away from their regular duties during training.

Online asynchronous training with an LMS can significantly reduce or eliminate many of these costs.

How to use the iSpring LMS ROI calculator

Here’s how to calculate LMS ROI with our user-friendly calculator:

1. Enter the current values for your company. If you're not conducting training yet, provide a rough estimate. For costs that don't apply to your business, simply enter 0 in those fields.
2. Some fields related to the cost of the iSpring Learn LMS will be filled in automatically. If you're considering a different solution, you can edit these fields as desired.
   Note: For companies with over 1,000 users, custom rate plans are available. Please contact us for details
3. Click on “Calculate” to view your ROI estimates for the first year using iSpring Learn, as well as projections for the subsequent years.

Example calculations

Imagine setting up a training system for 1,000 employees across three branches. You conduct monthly training with two instructional designers, each earning $80,000 annually. A trainer charges $800 per session, plus $300 for travel. Printing materials cost $100, and meals are $100. Total annual costs: $6,187,700.

Now, consider online training. iSpring Learn costs $2.55 per user. You’ll need an extra iSpring Suite Max seat for $970. Add an administrator at $80,000, plus $2,499 for their training. An instructional designer’s salary is $80,000. iSpring offers free tech support and no customization costs. The opportunity cost of employees being away from their regular duties during training is $40 per employee.

Using the LMS ROI calculator, you'll find that first-year costs total $726,019. The next year, without administrator training, costs drop to $723,520. This results in an ROI of 752% and 755%. It means you’ll reduce your expenditures by 7 times!