ROI Formula - CourseHub ROI Model
The CourseHub ROI formula: how to compute return on investment for online courses.
ROI Formula
The CourseHub ROI formula quantifies the financial return of an online course.
Formula
ROI = (expected_gain − total_investment) / total_investment × 100%
where:
expected_gain = baseline_salary × salary_lift × completion_rate
total_investment = course_price + (duration_hours × hourly_rate)
Worked Example
Consider a $49.99 course with these parameters:
| Parameter | Value |
|---|---|
| baseline_salary | $60,000 |
| salary_lift | +10% |
| completion_rate | 70% |
| course_price | $49.99 |
| duration_hours | 40 |
| hourly_rate | $30 |
Computation:
expected_gain = $60,000 × 0.10 × 0.70 = $4,200
total_investment = $49.99 + (40 × $30) = $1,249.99
ROI = ($4,200 − $1,249.99) / $1,249.99 × 100% = 236%
ROI Score (0-10)
The ROI score normalizes ROI to a 0-10 scale:
ROI_score = max(0, min(10, ROI / 100))
A ROI of 236% would yield a score of 10.0 (capped).
Salary Lift Variations
- Low (+2-5%): Soft skills, general knowledge courses
- Medium (+6-15%): Technical courses with verifiable skills
- High (+16-35%): Certifications, specializations, and high-demand tech skills