Calculator Inputs
Enter your assumptions, then calculate the multi-year forecast. Use the export buttons after results appear.
Example Data Table
Sample scenario to validate your setup and expectations.
| Sample Inputs | Value | Sample Output (Total Cost) | Amount |
|---|---|---|---|
| Employees | 120 | Year 1 Total | $50,027.04 |
| Growth / Hours / Inflation | 8% / 12 / 4% | Year 2 Total | $56,933.59 |
| Costs / Overhead / Contingency | Mixed / 12% / 5% | Year 3 Total | $64,959.32 |
Use the reset button to load the sample inputs.
Formula Used
- Employeesy = Employees0 × (1 + HeadcountGrowth)y−1
- HoursPerEmployeey = HoursPerEmployee0 × (1 + HoursGrowth)y−1
- TotalHoursy = Employeesy × HoursPerEmployeey
- CostMultipliery = (1 + AnnualIncrease)y−1
- InternalCosty = TotalHoursy × (CostPerHour × CostMultipliery)
- VendorCosty = VendorFixed × CostMultipliery + Employeesy × (VendorPerEmployee × CostMultipliery)
- OtherVariableCostsy = Employeesy × (Travel + Certifications + Materials) × CostMultipliery
- Subtotaly = InternalCost + VendorCost + LMS + Content + OtherVariableCosts
- Overheady = Subtotaly × Overhead%
- Contingencyy = (Subtotaly + Overheady) × Contingency%
- Totaly = Subtotaly + Overheady + Contingencyy
How to Use This Calculator
- Enter starting employees and forecast years.
- Add growth rates for headcount and training hours.
- Provide internal hourly costs and annual fixed fees.
- Fill per-employee costs for travel, certifications, and materials.
- Set overhead and contingency rates for budget protection.
- Press Calculate Forecast to generate totals and table.
- Use Download CSV or Download PDF after results appear.
Cost drivers that shape annual budgets
Training budgets combine fixed platform fees, variable learning hours, and per-employee program costs. This tool separates internal delivery, external vendors, LMS spend, and content development so leaders can see what moves the total. For example, 120 employees at 12 hours each produces 1,440 learning hours. At $18 per hour, internal delivery starts near $25,920 before fees.
Scaling effects from headcount and training hours
Growth assumptions multiply quickly. When headcount rises 8% yearly, employees increase from 120 to about 130 in year two and 140 in year three. If hours per employee also rise 5% yearly, the training hours expand faster than headcount. The combined effect pushes total hours from 1,440 to roughly 1,965 by year three. That volume shift can outpace flat vendor contracts and change sourcing decisions.
Inflation, vendor pricing, and multi-year compounding
Price changes matter because they compound. A 4% annual increase across vendor fees, platforms, and materials raises year-three unit costs about 8% versus year one. Fixed vendor retainers escalate on renewal, while per-employee fees track population. Modeling both avoids underestimating blended costs. If the vendor charge is $3,500 fixed plus $10 per employee, year-one vendor spend is $4,700 and grows with inflation and headcount.
Overhead and contingency as governance controls
Overhead captures administration, scheduling, reporting, and stakeholder time missed in line items. Applying 12% overhead to a $40,000 subtotal adds $4,800, creating a stronger budget request. Contingency protects delivery when enrollments shift or travel spikes. A 5% contingency on subtotal plus overhead adds another $2,240 in that example. Together, these controls reduce mid-year reforecasting and improve credibility with finance partners.
Using scenario exports to support approvals
Decision-making improves when scenarios are easy to share quickly. After calculation, the table summarizes yearly totals, cost per employee, and cost per learning hour for benchmarking. Exporting CSV supports analysis in workforce planning models, while the PDF snapshot works for approvals and vendor reviews. Create best-case, expected, and conservative versions by adjusting growth, hours, and contingency. Comparing totals highlights the inputs that deserve negotiation or policy changes.
FAQs
What costs should be treated as fixed vs variable?
Treat LMS subscriptions, annual vendor retainers, and content libraries as fixed. Treat instructor hours, per-employee vendor charges, travel, certifications, and materials as variable because they scale with headcount and participation.
How do I choose the internal cost per training hour?
Include facilitator pay, preparation time, and admin support. Divide total internal L&D labor cost by expected annual delivery hours. Use a blended rate if multiple roles deliver training.
Should I forecast by fiscal year or calendar year?
Use the year that matches your budgeting cycle. The table labels years using the current calendar year, but the math works for any 12-month period. Adjust inputs to reflect your cycle’s starting headcount.
How can I model a one-time rollout project?
Add the rollout expense into content development or the vendor fixed fee for the first year, then reduce it in later years. Run two scenarios and compare totals to isolate the rollout difference.
What overhead and contingency rates are common?
Rates vary by maturity and delivery model. Many teams start with 8–15% overhead for administration and 3–10% contingency for uncertainty. Use higher values when travel, vendors, or enrollment volatility is high.
Why is cost per learning hour useful?
Cost per learning hour normalizes spend across departments and time. It helps compare internal versus vendor delivery, justify platform investments, and set guardrails for program design. Track it alongside cost per employee for a balanced view.