Academic Return on Investment (ROI) for School Districts
How do you know which programs are having the greatest impact on student outcomes?
Academic ROI uses predictive analytics to measure how much a program improves student growth beyond what would have happened anyway.
Asking the Right Question
Academic return on investment (ROI) is an analytic approach that quantifies the impact of a particular program or intervention on student growth.
The key insight that motivates academic ROI is recognizing that students will continue to grow with or without a particular investment. Academic ROI quantifies the impact of an investment on student growth above and beyond growth that would have happened anyway.
Districts often ask“How did students in the program grow?”
Academic ROI asks“How did students in the program grow compared to how they would have grown without the program?”
Watch the One Minute Overview
ECRA’s ROI Methodology
ECRA measures academic ROI as the distance between observed performance with a program and projected performance without it.
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See observed growth
ECRA analyzes an individual student’s longitudinal growth trajectory, including observed performance with the program.
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Project expected growth
ECRA’s predictive analytics use each student’s trajectory and the trajectory of similar students to create a personalized projection. The projection represents where a student would likely perform without the program.
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Measure the distance
ECRA measures the distance between observed performance with the program and projected performance without the program. That distance is the academic ROI.
- Observed results. Student performance with the program.
- Projected results. Student performance without the program.
Observed performance with the program
−Projected performance without the program
=Academic ROI
ECRA reports the result as an effect size so leaders can compare programs.
Reporting Results
ECRA reports academic ROI using the metric of effect size. We categorize effect sizes using well established research-based thresholds to aid interpretation.
Imagine evaluating every program and intervention every year for academic ROI. Over time, ensure investments are directed towards programs with positive ROI.
| Program | Students Served | Financial Allocation | Effect Size (ROI) |
|---|---|---|---|
| Reading Support | 112 | $250,000 | −0.32Negative ROI |
| Summer School | 58 | $112,000 | +0.13Potential ROI |
| Instructional Coaches | 145 | $135,000 | +0.40Positive ROI |
How to Read an Effect Size
- −0.60Negative ROIEffect size −0.60 or below
- −0.30Negative ROIEffect size −0.30 to −0.59
- 0.0Potential ROIEffect size −0.29 to +0.29
- +0.30Positive ROIEffect size +0.30 or higher
Putting Academic ROI to Work
Academic ROI uses a disciplined method of inquiry that leverages the scientific method.
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1
Invest
Our district invested $1.5 million into a reading program to accelerate rates of growth for struggling readers.
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2
Question
Are students served by the program growing faster than they would have grown without the program?
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3
Evaluate
Create a personalized growth projection for each student assuming the program did not exist. Then, compare observed growth for each student with the program to projected growth without the program.
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4
Act
Validate program effectiveness, use results to improve the program, or consider reallocating resources to more effective programming.
An In-Depth Look at Academic ROI
Academic ROI is measured by comparing student growth as a result of a particular program to student growth without the program. Learn the process of measuring academic ROI and how to leverage predictive models to quantify the impact that specific programs have on student learning.
In this video, Dr. John Gatta, CEO of ECRA Group, defines academic ROI and describes a process school districts can use to measure it.
Academic Return on Investment Connects Resources to Results
ECRA’s Academic Return on Investment feature helps district leaders understand which programs, strategies, and investments are making the greatest impact on student outcomes. By connecting resource allocation to measurable results, districts can make evidence-based decisions that strengthen improvement efforts and support long-term success.
Keep exploring what every superintendent should know about predictive analytics, Data Briefs, and the Strategic Dashboard.
Frequently Asked Questions
Answers to common questions about how academic return on investment works and how ECRA measures it.
Explore all FAQsWhat is Academic Return on Investment?
Academic Return on Investment, or academic ROI, is an analytic approach that quantifies the impact of a program or intervention on student growth. It helps district leaders see what is working, where investments are making an impact, and where adjustments may be needed.
How is academic ROI measured?
ECRA creates a personalized projection for each student that estimates performance without the program. ECRA then measures the distance between observed performance with the program and projected performance without the program, and reports the result as an effect size.
How does predictive analytics support academic ROI?
Predictive analytics uses each student’s academic history and the trajectories of similar students to project likely performance without a program. That projection gives leaders a fair comparison point, so they can separate the impact of a program from growth that would have happened anyway.
What effect size shows a positive academic ROI?
ECRA categorizes an effect size of +0.30 or higher as positive ROI. An effect size from −0.29 to +0.29 is potential ROI, and an effect size of −0.30 or below is negative ROI.
How does Academic Return on Investment support school improvement?
Academic Return on Investment gives teams evidence they can use to evaluate the impact of key strategies within ECRA’s School Improvement solution. This helps districts focus time, funding, and attention on the actions most likely to improve student outcomes.
Why is Academic Return on Investment important for district leaders?
District leaders are asked to make difficult decisions with limited resources. Academic Return on Investment helps leaders move beyond assumptions by using evidence to guide decisions about programs, staffing, interventions, and strategic priorities.
What types of questions can Academic Return on Investment help answer?
Academic Return on Investment can help leaders explore questions such as which initiatives are producing results, which student groups are benefiting, and whether resources are aligned to the district’s improvement goals.
How does ECRA make Academic Return on Investment easy to understand?
ECRA turns complex data into clear, actionable insights that district and school leaders can use with confidence. The goal is to make analysis accessible, practical, and useful for decision-making, planning, and communication.
