ATD Benchmark: avg $1,280 per employee per year

What does employee training actually cost?

The dual ROI calculator for L&D teams. Compare the cost of training against the cost of NOT training — then screenshot it for your CFO.

Turnover modelling Error rate impact 1/3/5-year ROI Break-even analysis

Team Details

employees

Number of employees to be trained

$

Fully loaded salary per employee

hrs

Total hours away from core work

Effectiveness: 65% — LMS-delivered courses, videos, quizzes

Training Costs

$

License, course, or materials cost

$

Total for the whole cohort

$

Transport, hotel, meals (0 for virtual)

$

Annual platform or license fee

Risk Factors (without training)

%

Your team's current annual churn rate

% of salary

Salary pool % lost to mistakes, rework, wasted effort

$

Potential fines or regulatory cost if untrained

Cost of Training

$20.9K

$837 per employee

Course fees$5.0K
Trainer / facilitator$0
Travel$0
Platform / LMS$1.5K
Employee time away$14.4K

Cost of NOT Training

$590.6K

per year, if training is skipped

Excess turnover cost$253.1K
Error rate losses$56.3K
Compliance risk$0
Productivity gap$281.3K

ROI Projection

Net benefit = cost of not training saved − training investment. Refresh cost in years 2+ = 30% of year 1.

1-Year Return

$569.7K

ROI: +2723%

3-Year Return

$1.74M

ROI: +5193%

5-Year Return

$2.91M

ROI: +6316%

1-Year Net Benefit+$570K
3-Year Net Benefit+$1738K
5-Year Net Benefit+$2907K

Break-even Point

Training investment pays back in < 1 month

Model Assumptions

  • • Untrained employees are 2× more likely to leave (LinkedIn Learning 2023)
  • • Replacement cost = 90% of annual salary (SHRM median: 50–200%)
  • • Untrained employees make 60% more mistakes (ASTD research)
  • • Productivity gap modelled as 15% of salary pool per year
  • • Refresh training in years 2+ costs 30% of initial investment

Need help building your L&D business case?

Digital Signet helps organisations design training programmes, select LMS platforms, and quantify L&D ROI for leadership.