What is the total cost of training an employee?

ATD 2023: average US direct learning cost $1,305/employee/year. Including indirect costs (employee time): $3,000–5,000/employee/year for active training programmes. New employee onboarding costs average $2,500–5,000+ including time investment. Technology companies report the highest training costs at $4,000–6,000+/year per employee.

How does training cost compare to replacement cost?

SHRM estimates the cost of replacing an employee is 50–200% of annual salary (50–75% for hourly workers; 100–200% for specialised roles). Investing $3–5k/year in training to retain an employee earning $70k is far cheaper than the $35–140k replacement cost if they leave due to lack of development.

Training Cost Per Employee Calculator (Corporate L&D)

Formula Definitions

The Training Cost Per Employee Calculator (Corporate L&D) works by applying a well-defined formula to the values you enter. Understanding the formula behind the calculation helps you interpret the result and check that your inputs are correct. Below we break down the key components that drive the Training Cost per Employee.

The core formula used by this calculator is:

Result = f(inputs, settings)

Each variable in the formula has a specific meaning:

inputs — Values entered into the Training Cost per Employee.
settings — Options, units, or parameters that adjust how the calculation is performed.
Result — Computed output for the chosen inputs and settings.

How to Use This Calculator

Enter the required values. Enter the required values into the Training Cost Per Employee Calculator (Corporate L&D) input fields.
Adjust settings. Adjust any settings, select applicable options, or choose units as needed.
Calculate the result. Press Calculate to compute the result using the underlying formula.
Interpret the output. Review and interpret your result using the provided context, reference ranges, or explanatory notes.

Glossary and Definitions

Input: A value entered into the calculator to be processed.
Output: The computed result returned by the calculator for the given inputs.
Setting: An option that adjusts how the calculation is performed, such as unit selection or mode.
Training cost: A key concept referenced by the Training Cost per Employee: Calculate total cost per trained employee including course fees, materials, trainer salary, employee time (at hourly rate), lost productivity, travel, and facilities. Compare against ATD and SHRM industry benchmarks by sector and company size.
L&D spend: A key concept referenced by the Training Cost per Employee: Calculate total cost per trained employee including course fees, materials, trainer salary, employee time (at hourly rate), lost productivity, travel, and facilities. Compare against ATD and SHRM industry benchmarks by sector and company size.
Corporate training: A key concept referenced by the Training Cost per Employee: Calculate total cost per trained employee including course fees, materials, trainer salary, employee time (at hourly rate), lost productivity, travel, and facilities. Compare against ATD and SHRM industry benchmarks by sector and company size.
ATD benchmark: A key concept referenced by the Training Cost per Employee: Calculate total cost per trained employee including course fees, materials, trainer salary, employee time (at hourly rate), lost productivity, travel, and facilities. Compare against ATD and SHRM industry benchmarks by sector and company size.
SHRM training: A key concept referenced by the Training Cost per Employee: Calculate total cost per trained employee including course fees, materials, trainer salary, employee time (at hourly rate), lost productivity, travel, and facilities. Compare against ATD and SHRM industry benchmarks by sector and company size.
Employee development cost: A key concept referenced by the Training Cost per Employee: Calculate total cost per trained employee including course fees, materials, trainer salary, employee time (at hourly rate), lost productivity, travel, and facilities. Compare against ATD and SHRM industry benchmarks by sector and company size.