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How Do I Show Return
on Investment?

Category

Formula

1.  Public Assistance Savings

Multiply the # of students removed from public assistance by the average annual TANF benefit.

Example:  100 students X $13,000 = $1,300,000

2.  Unemployed Students Who Find Jobs

Multiply the # of students who obtained a job times the hourly minimum wage times 40 hours/week times 52 weeks.

Example:  100 students X $5.35 X 40 X 52 = $1,112,800

3.  Employed Students Who Get Job Promotions or Better Jobs

Multiply the # of students times $.25/hour times 40 hours/week X 52 weeks.

Example:  100 students X .25 X 40 X 52 = $52,000

4.  Increased Tax Revenue

Add the totals from #2 and #3, then multiply by 20%.

Example:   $1,112,800 + $52,000 X .20 = $236,000

Return on Investment (ROI) 

Total of #1 through #4 minus total Adult Education budget equals ROI! 

EXAMPLE 

      $2,700,800            --       $1,500,000  =    $1,200,800

Dollars Saved or Earned       Adult Ed Budget        ROI

Contact us: Dr. Lennox McLendon, Executive Director; 444 North Capitol Street, NW; Suite 422; Washington, DC 20001
Phone: 202-624-5250; Fax: 202-624-1497; Email: lmclendon@naepdc.org