What is the ROIT formula?

• A. ROIT = Net benefits / training costs
• B. ROIT = (Net benefits − training costs) / training costs
• C. ROIT = (training costs − Net benefits) / Net benefits
• D. ROIT = (Net benefits − training costs) / training costs

Answer: (D)

This item tests how to measure the return on a training investment. The ROIT formula compares the net gain from training to the cost of the training, using (Net benefits − training costs) divided by training costs. This captures how much profit the training yields per unit of cost, and you can read the result as a ratio or convert it to a percentage. For example, if training yields benefits worth 150 and costs 50, the net gain is 100, so ROIT = 100/50 = 2, or 200%. Using Net benefits divided by training costs without subtracting the costs would not reflect the actual profit after paying for the training.