LMS ROI Calculator

Our LMS ROI calculator will identify how much time and money your organization can save by making the switch to Continu.

Add your data below to get an accurate LMS ROI calculation:

Company Size

Total number of employees in your organization

Number of Learners

Total number of active users in your LMS

Average Admin Salary

Based on the industry average of L&D Managers in U.S.

Training Materials Created per Month

Ex: videos, articles, assessments, and courses

Hours to Create Each Training Material

Average hours it takes to create each piece of content

Employee Turnover Rate

U.S. averages are 3.4% and vary by industry

With Continu, your organization can expect to see these results annually:

Est. Savings

$624,476

Est. Admin Hours Saved

966

Return on Investment (ROI)

8.4x

Time is money. Save both.

Book a personalized demo to see how much you can get back by switching to Continu's modern LMS.
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How to Calculate the ROI of an LMS

Calculating the ROI of your Learning Management System is crucial for understanding its true business impact. Leading organizations like Instacart have achieved remarkable results, saving 612 administrative hours annually through efficient training management. Similarly, Gaia Dubai has realized over $100,000 in yearly savings by modernizing their learning infrastructure with Continu.

Understanding the Core Components

The ROI of an LMS is built on three fundamental pillars:

1. Time Efficiency

Modern LMS platforms dramatically reduce the time spent on training administration. This includes content creation, distribution, tracking, and reporting. Consider how much time your team currently spends on these tasks manually.

2. Cost Reduction

An effective LMS cuts costs across multiple areas:
- Reduced administrative overhead
- Lower employee turnover
- Faster onboarding
- Eliminated travel and venue costs for training
- Decreased printing and material expenses

3. Training Impact

Better training leads to:
- Improved employee performance
- Increased productivity
- Enhanced compliance
- Higher customer satisfaction
- Greater revenue per employee

Basic LMS ROI Formula

To calculate your LMS ROI, use this straightforward formula:

ROI = (Total Benefits - Total Costs) ÷ Total Costs × 100

Where:
- Total Benefits = Time Savings + Cost Reduction + Performance Improvements
- Total Costs = LMS Investment + Implementation Costs + Maintenance

Practical Example

Let's say your organization:
- Spends $50,000 annually on traditional training
- Has 500 employees
- Averages 20 hours per week on training administration

After implementing an LMS:
- Training costs reduce to $30,000
- Admin time drops to 5 hours per week
- Employee productivity increases by 5%

The ROI calculation would factor in:
1. Cost savings: $20,000
2. Admin time value: $15,000 (15 hours/week × $20/hour × 50 weeks)
3. Productivity gain: $25,000 (estimated value)

Total Benefits = $60,000
LMS Cost = $25,000

ROI = ($60,000 - $25,000) ÷ $25,000 × 100 = 140%

Maximizing Your LMS ROI

To achieve results like Instacart's 612 hours saved or Gaia Dubai's $100,000 annual savings:

1. Start with clear objectives and KPIs
2. Choose an LMS that matches your organization's needs
3. Ensure proper implementation and user adoption
4. Regularly measure and optimize your training programs
5. Use automation features to reduce administrative overhead

Remember, ROI isn't just about cost savings – it's about creating a more efficient, effective, and engaged learning environment that drives business success.

Your questions, our answers

LMS ROI FAQs

What is an LMS ROI Calculator?

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An LMS ROI Calculator helps you measure the financial benefits of implementing a Learning Management System. It converts your organization's training needs and challenges into concrete numbers, showing you how much time and money you could save with an LMS.

What metrics are calculated for the ROI of an LMS?

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The ROI of an LMS is measured through three key areas that directly impact your organization's bottom line and operational efficiency.

First, we measure the administrative hours you'll save by automating tasks like content creation and distribution.

Second, we calculate the direct cost savings from reduced overhead and improved employee retention.

Finally, we determine your total return on investment by comparing your LMS investment (price of Continu) to the combined value of time saved, reduced costs, and improved operational efficiency.

Together, these metrics give you a clear picture of how a Continu's LMS can benefit your organization in terms of money and time saved along with the return on investment.

How do you determine the time and money saved annually?

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We calculate annual savings by looking at real-world improvements in your daily operations.

For time savings, we measure how much faster you can create and distribute training content, comparing your current process to the streamlined approach an LMS provides.

For cost savings, we look at both direct and indirect benefits: the value of administrative time saved, reduced employee turnover costs, and more efficient training delivery.

These calculations are based on industry standards and actual customer experiences, giving you realistic expectations for your potential savings.

What do I do with with my LMS ROI results?

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Your ROI results serve as a powerful tool for making informed decisions about your learning and development strategy.

You can use these numbers to build a compelling business case for implementing or upgrading your LMS, compare different solutions based on their potential return, and set realistic goals for your training programs.

The results also help you identify which areas of your training process could benefit most from automation and improved efficiency.

This information is particularly valuable when discussing training initiatives with stakeholders and planning your learning and development budget.

How do I find my current LMS ROI numbers?

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Finding your current metrics starts with a thorough review of your existing training processes.

Begin by tracking the time your team spends creating and managing training content, including hours spent on administrative tasks and content distribution.

Document your current employee turnover rates and calculate the associated costs of hiring and training new staff.

Take note of how many learners you're managing and how much content you create monthly. It's also helpful to gather feedback from your training administrators about their daily challenges and time investments.

This information creates a baseline for comparing potential improvements and calculating your expected ROI with a new or upgraded LMS.

Start seeing a better ROI with Continu

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Get back $1,000s by switching to Continu

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Save 100s of admin hours yearly with automations

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Easy-to-use and intuitive for both admins and learners

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Deep integrations with the tools you already use

Join 300+ companies that switched to Continu
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