Most educators aren’t wired to think like business owners. Putting a dollar amount on student success may feel strange and counterintuitive to your mission.
However, with tighter budgets, calculating the ROI of edtech isn’t only smart, it’s necessary. By calculating the ROI of your classroom tools, you can cut through the noise and invest in tools that actually move the needle for your students. Here’s how.
Step 1: Defining Your Investment Costs
When adopting or reevaluating a new platform, start by identifying all the costs associated with adopting the platform. These could be a blend of direct and indirect costs, including:
- Upfront costs: Licensing fees, hardware like VR headsets, implementation and training.
- Recurring costs: Annual subscription fees, maintenance, and support.
- Indirect costs: Staff time for management and training.
When evaluating edtech, it’s wise to project your ROI two to three years out since the first year inevitably requires a higher investment of staff time, training, and recruitment.
Step 2: Measuring Cost Savings
When some leaders see new tools, such as virtual, immersive learning content, in a budget, they only see dollar signs. Part of your job as an advocate is to educate your leadership not only about the cost, but also the cost savings these new tools can bring.
For example, if you are looking to invest in simulation-based education content, savings on consumables and physical space can be significant. Look at all the ways virtual learning can reduce expenses across three key areas:
1. Consumable Materials
Trades classrooms use a lot of consumables as part of their education and training. These can include:
- Heavy equipment
- Scrap metal
- Copper pipes and pipe fittings
- Fuses and circuit breakers
- Wiring, connectors, and terminals
- Personal protective equipment (PPE)
If your platform replaces or reduces consumables, calculate what you’re saving each year.
For example, Trevor Geisz, HVAC-R Instructor at Mercer County, found that Interplay helped reduce costs by allowing students to use significantly less copper. “Interplay does help me cut costs for my budget. I’m able to afford more things that I couldn’t before because I don’t have to get as many consumables. So if we need to learn, for example, stripping wire, we can either strip miles of wire to practice this live with the actual wire, or we could strip miles of wire on interplay,” said Geisz.
2. Lab Space and Facilities
Virtual edtech platforms often reduce the need for physical space, which lowers utility bills, maintenance, and facility costs.
How much a virtual learning platform saves you depends on the set up of your program. However, for many Interplay Learning customers, the savings are significant. “Since partnering with Interplay Learning, JASA, Inc. has been able to save roughly around $25,000 a month in rent of office space because 90% of the class is done virtually and then they come in for the actual lab times,” said John Chapman, CEO of Jasa Inc.
3. Revenue Growth
A good edtech platform can also grow your enrollment by offering more flexible, engaging, and scalable learning options. Whether you’re launching a new program or overhauling an existing one, a technology-first program can help you attract and reach more students, particularly students who may not be able to regularly travel to campus or are balancing work and school with other responsibilities.
Jasa Inc. was also able to grow their enrollment significantly with the additional flexibility that Interplay Learning offered. “Interplay makes it easier for us to reach out to more people than we could before. It’s made us grow 65% and more than doubled our revenue,” said Alexis Chapman, Regional Director of Operations, Jasa Inc.
Step 3: Calculate Your Educational Technology ROI
You don’t have to be a data analyst to measure ROI. What matters is being intentional. Track your costs, look for real savings, and tie everything back to student outcomes and enrollment.
Taking a Long-Term View When Adopting Educational Technology
If you’re considering a new edtech tool, take a realistic look at what it will take to adopt the software and get it up and running. Don’t let this figure scare you. Instead, take a long-term view of where you want your program to be in a few years. Do you want to be fighting for every dollar as inflation drives consumable costs up? Or do you envision yourself scaling and modernizing with immersive technology and hybrid, flexible program offerings?
At the end of the day, the goal isn’t just to adopt technology. It’s to make smart decisions that put you in a sustainable position to serve students for years to come.
