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7 Suggestions To Calculate Your Per-Person LMS Finances

How to measure your LMS budget per user

Finding the right LMS is usually a matter of trial and error. You check providers, do test drives and receive recommendations from your online network. However, you can simplify the process and take some stress out of the equation by doing some preliminary work. Namely, to receive a free LMS consultation. An LMS specialist will make a list of the most important options based on your specific needs. Including the industry, number of users, and budget. However, you need to have a clear idea of ​​how much you want to spend to make sure this list is as targeted as possible. These tips can help you calculate a more accurate LMS budget per user before your LMS consultation.

7 tips for adding up the cost of LMS per user

1. Consider setup costs and ongoing maintenance

You may be paying for the number of users enrolled in your course. But there are other underlying costs in the game. For example, the cost of setting up the system and ongoing maintenance. While some providers simply charge per user, others may charge an additional registration fee. Then there is the not-so-small thing of the maintenance bill. For example, how much do you have to pay to update the system or buy add-ons? How much will custom content development set you back? Are there any updates that you need to purchase that are not included in the package? These are all basic expenses that you need to consider when calculating your LMS budget.

2. Make a list of the currently active users

Some LMS providers charge a fee for every registered user, even if they are not actively accessing the platform. While others only charge for users who are actively participating in your online training program. That means they log in at least once during this calendar month. Therefore, it is advisable to keep a balance sheet for both accounts. How many employees do you have to accommodate? How many of them are on your permanent payroll? Seasonal employment? Does everyone have to access training resources every month? Or do some, like external partners, only use quarterly training resources?

3. Account for your L&D team

It’s not just the front-end users that you need to think about. The backend users also count as part of the user count. For example, content developers, LMS administrators, and other members of your L&D team. There may even be occasional employees to add to the LMS budget estimate per user. All of these contributors will still need a login username and password. This means that they all fall under the definition of LMS users and must be considered.

4. Take into account your annual sales and total training costs

Now that you have a better idea of ​​how many users you have, and you’ve deducted setup and maintenance costs from your budget. It’s time to determine how much you can actually allocate to new LMS and online training based on your annual sales. What percentage of your sales should you allocate to L&D? How much of it can be used solely for LMS spending?

5. Leave some headroom for staff expansion

You may not plan on an increase in new hires in the near future. However, you never know what tomorrow might bring for your company. There may be an upturn in sales and you suddenly have to bring on 20 new sales team members. Or you decide to expand into a new market only to find that you have reached your LMS user limit and budget. Always leave some room for expansion in your LMS budget per user to avoid overrun fees. However, to get the most accurate estimate you need to have a realistic expected cost per user. For example, you probably don’t have to expect an increase of 100 additional users this quarter unless rapid growth is forecast.

6. Evaluate your current LMS costs

What you’re currently spending on your LMS gives you a good indication of how much you need to allocate per user on your new system. This also gives you a chance to reevaluate your budget and see if there are any expenses to eliminate. In fact, during your LMS consultation, you may be able to use the same per-user estimate as before. Especially if there haven’t been any significant changes since you bought your last platform.

7. Get input from your team before cracking the final numbers

It is advisable to examine every aspect of business operations before determining your final user count and requesting a free LMS quote. Get input from your team, e.g. B. from department heads, LMS administrators and other important actors. They can help you plan ahead for future growth and give you a more accurate workforce. They can also tell you what to look for in your new system, which is another important part of LMS consulting. After you have a more holistic view of your LMS needs, add up your users and present your overall budget. Then run through the numbers to see how much you can comfortably spend per user.


Setting a realistic budget and identifying internal resources will ensure that your LMS consultation meets your needs. It is important to consider all fees, including the hidden ones that are often overlooked. You also need to look at the bigger picture when it comes to sales, current staffing needs, and future growth. Then get feedback from your team before making your final per-user estimate. But it all starts with a base budget of setup fees and maintenance costs that are on top of your user expenses.

You have your personalized LMS recommendation list and can make your selection. Is there any way I could use an online LMS directory to research your top LMS offerings and find the LMS that is the best value for money? Read the article LMS Consulting Follow-Up: 8 Tips for Using an LMS Software Directory to Research Your Top LMS Choices and discover the top tips for using an LMS Software Directory after LMS Consulting to find the ideal platform for your business to select.


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