ROI 101: How to Calculate the Return an LMS Could Bring Your Association

A growing stack of coins over a stopwatch, indicating revenue growth over time

As the leader of an organization, you know that investing in the right tools can make all the difference when it comes to boosting member engagement.

In today’s digital age, many associations are turning to learning management systems (LMS) to provide continuing education (CE) programs for their members.

But, how do you know if investing in an LMS is worth it?

The answer lies in calculating your Return on Investment (ROI)!

ROI is a measurement of how much money you get back compared to the money you put in.

Calculating the ROI for an LMS is not a one-size-fits-all equation; every organization will have different results depending on its needs.

The basic formula for calculating the ROI of investing in an LMS for continuing education programs is as follows:

ROI = [(Average revenue per course x Number of courses sold) – (Cost of LMS technology)]

Let’s say your association is looking to use an LMS to host its CE programs.

After doing some research, you’ve determined that the average revenue per course is $50; keeping that in mind, you predict that you will sell 100 courses per year.

You speak to a vendor and learn that the yearly cost of their technology is $2,000.

To calculate ROI in this case, we would use the formula as follows:

ROI = [(Average revenue per course x Number of courses sold) – (Cost of LMS technology)]

ROI = (50 x 100) – 2000

ROI = 5000 – 2000

ROI = $3,000

This means that in this scenario, investing in an LMS would give your association a return of $3,000!

Want to see the figure as a percentage? No problem!

All you have to do is take the cost of the LMS technology ($2,000) and divide it by $3,000 (total revenue earned).

This gives us a result of 50%. For every $1 you spend, you get $1.50 back.

This means that if your association were to invest in this LMS for its CE programs, it would get a return of 50%.

These figures are an easy way to find the right LMS for your association’s continuing education programs. Remember–a quality LMS can be a great way to boost engagement and keep your members informed and up-to-date on the latest trends! Not only can it help your association stay competitive, but it can also help you generate more revenue from your CE offerings.

There are a few key things to consider before investing in an LMS:

  • First, you should make sure that the LMS you choose is the right fit for your organization. You need to make sure that it can offer the features and tools you need to successfully implement your continuing education programs.
  • Next, you should ensure that the LMS is easy to use and navigate for your members. If your members can’t figure it out, they won’t use it!
  • Finally, you should make sure that the cost of the LMS is within your budget. This is where the ROI calculation comes in; if the result is in the negatives, don’t buy it!


Investing in an LMS can be a great way to get the most out of your continuing education programs. By calculating your ROI and taking the time to find the right fit, you can ensure that you get the most out of your investment. And, by arming your association with the right tools, you’ll be able to offer your members a comprehensive and engaging learning experience that’ll keep them coming back for more!