Start with the current cost of practice
Choose one procedure and count how often learners practise it. For each session, note the materials used, setup and reset time, instructor time, machine time and any production slot that could not be used for other work. Separate costs you actually pay from time that is valuable but does not change the budget.
Use records from the training site where possible. A rough estimate is still useful if you label assumptions and test how the result changes when those assumptions move.
Count the cost of building and running it
Include the application scope, devices, software or hosting, setup, staff preparation, content review, support and updates. Add any hands-on training that learners still need. A simulator often changes how practice is delivered. It does not automatically remove the rest of a training programme.
Ask what the quote includes and which costs sit with your team. For Simvra’s project scope and pilot options, see the custom training cost guide and project terms and ownership.
Work out break-even and ROI
This fictional example uses round numbers to show the calculation. It is not a Simvra quote or a forecast. Suppose a site can replace selected introductory practice sessions with simulation while keeping its required hands-on training unchanged.
| Assumption for the first year | Amount |
|---|---|
| Materials and paid equipment-use costs avoided per replaced session | $150 |
| Added cost of delivering each virtual session | $15 |
| Total fixed costs added: development, devices, setup and first-year support | $27,000 |
| Sessions actually replaced during the year | 200 |
Each replaced session avoids a net $135: $150 minus $15. The $27,000 fixed cost therefore needs 200 replaced sessions to break even. At that usage, $30,000 of avoided costs equals $27,000 in fixed costs plus $3,000 in session costs.
First-year return on investment (ROI) is net savings divided by the added investment. Here it is zero at break-even. At only 100 replaced sessions, the site would spend $13,500 more than it avoids. Sessions that simply add extra practice do not count as replacements.
The comparison includes the assumed added costs and leaves practical training costs unchanged on both sides. It assigns no cash saving to salaried instructor time. Replace the assumptions with your figures, include any extra staff costs, and add later support or updates when comparing several years.
Separate cash savings from time released
Less time spent resetting equipment may free an instructor or machine for other work. That is useful capacity, but it is not automatically a cash saving. Record reduced overtime or rental charges as avoided costs. Record any additional production benefit separately, using the added margin rather than the full sales value.
More chances to practise, consistent scenarios and access to rare situations may still matter when they do not reduce the budget. Keep those benefits separate from the break-even calculation.
Test the assumptions before deciding
Check whether learners will use the simulation often enough, whether the task fits the chosen device and whether updates will be frequent. Try a lower-use case and a higher-support case. If a small change in usage reverses the result, treat the estimate as uncertain.
The U.S. Government Accountability Office’s cost-estimating guide recommends documenting assumptions and testing how changes affect an estimate. Its guidance covers public program estimates, but the practice of making assumptions visible is useful for a training decision too.