Calculating the ROI of your e-Learning courses

Written By: Cudy

19th August 2021

If you’re running e-Learning courses, how do you calculate the return on investment (ROI) of your e-Learning?

We have a simple formula to help you calculate the ROI of your e-Learning courses. It’s a formula that we use ourselves and one that we recommend to our clients:

Calculating the ROI of your e-Learning courses = % Retention x Cost per Learner x Return on Investment per Learner

Here’s an example:

If you have a training course that costs $1000 and has a 50% retention rate, then the cost per learner is $500. If your average return on investment (ROI) per learner is $10,000, then the ROI of your course is: $500 x 50% x $10,000 = $2500. So, for every dollar spent on your course, you get a return of $2.50. Pretty good!

But it gets better…if you increase the retention rate to 80%, then the cost per learner drops to just $250 and if your average ROI per learner stays at $10,000 then the ROI increases to: $250 x 80% x $10,000 = $4000. So, for every dollar spent on your course, you get a return of $4.00.

So the question is: how do you increase the retention rate?

You can improve the course design and learner experience to make it more engaging and memorable. You can also make it shorter and more concise by focusing on the core learning objectives. We often find that increasing the course length actually reduces the retention rate!

Now it’s your turn…how do you calculate ROI for your e-Learning courses?


Written by

Cudy

Cudy is an online marketplace for real-time learning where students can achieve mastery over their subjects by learning live from educators who are passionate about providing the best learning experience for their students.

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