Example: Reduce training requirements by 40%.
Reduction in Training Needs: 40% Annual Salary (Trainee): 30,000 Improvement Cost: 100,000
Number of Target Users: 2,000 Annual Salary (Trainer): 40,000 Expected Project Life: 3 years
Duration of Training Hours: 20 hours Number of Classes: 100    
Future Gain from Improvement = [2,000 x (30,000/1,840) x 20 + 100 x (40,000/1,840) x 20 ] x 0.4 * [(1+0.05)3 - 1]/0.05 – 100,000(1+0.05)3 = 761,455
Total Gain from Improvement = 761,455 / (1+0.05)3 = 657,773
Annual Gain from Improvement = 657,773 / 3 = 219,258
Annual ROI = 219,258 /100,000 = 2 : 1
Total ROI = 657,773 / 100,000 = 7 : 1
* Work year = 230 work days / year; 8 hours workday = 1840 hours / year
Calculate Reduced Costs on Formal Training
Reduction in Training Needs: %
Number of Target Users:
Duration of Training: Hours
Annual Salary (Trainee):
Annual Salary (Trainer):
Number of Classes:
Days Per Year:
Work Hours Per Day:
Improvement Cost:
Expected Project Life: Year(s)
Total Gain from
Improvement ($)
Annual Gain from
Improvement ($)
Annual ROI
Total ROI
 
Compare ROIs Scenario 1 Scenario 2 Scenario 3
Reduction in Training Needs: % % %
Number of Target Users:
Duration of Training: Hours Hours Hours
Annual Salary (Trainee):
Annual Salary (Trainer):
Number of Classes:
Days Per Year:
Work Hours Per Day:
Improvement Cost:
Expected Project Life: Year(s) Year(s) Year(s)
Total Gain from
Improvement ($)
Annual Gain from
Improvement ($)
Annual ROI
Total ROI