Slide 5. How the Calculator Works (cont'd)

The Asthma Care Return-on-Investment Calculator

Slide presentation describes the Asthma Care Return-on-Investment Calculator.
Text Description is below the image.

Return on Investment (ROI): A program that costs $50 per participant leads to an ROI* equal to $3,750,000 saved divided by $5,000,000 cost ($50 cost per participant multiplied by 100,000 participants), which is equal to $0.75. This result means that every $1 invested returns only 75 cents, or costs 25 cents.

A breakeven ROI is equal to $1.00.

*Formula involves discount rate. See Calculator Appendix, "How the Model Works."

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Page last reviewed October 2010
Internet Citation: Slide 5. How the Calculator Works (cont'd): The Asthma Care Return-on-Investment Calculator. October 2010. Agency for Healthcare Research and Quality, Rockville, MD. http://www.ahrq.gov/cpi/centers/ockt/kt/webinars/roicalc/roicalcsld5.html