SROI Calculator
Free Sroicalculator Calculator for env impact economics. Enter variables to compute results with formulas and detailed steps.
Formula
SROI = Total Monetized Benefits / Total Investment
SROI divides total monetized social, environmental, and economic benefits by total investment.
Worked Examples
Example 1: Community Green Space
Problem: Investment: $500k. Social: $80k/yr. Environmental: $45k/yr. Economic: $60k/yr. Duration: 10 yr.
Solution: Annual=$185k\nTotal=$1,850k\nSROI=$1,850k/$500k=3.70\nNet SROI=2.70
Result: SROI: 3.70:1 | Net: 2.70
Example 2: Renewable Training Program
Problem: Investment: $200k. Social: $55k/yr. Environmental: $12k/yr. Economic: $40k/yr. Duration: 5 yr.
Solution: Annual=$107k\nTotal=$535k\nSROI=2.68\nNet=1.68
Result: SROI: 2.68:1
Frequently Asked Questions
How is the SROI ratio calculated?
SROI = Total Present Value of Benefits / Total Investment. Benefits include social outcomes like improved health and education, environmental outcomes like reduced pollution and preserved biodiversity, and economic outcomes like job creation and cost savings. All outcomes must be expressed in monetary terms through established valuation methods, proxy values, or stakeholder consultation processes.
What is the difference between SROI and traditional ROI?
Traditional ROI focuses exclusively on financial returns to investors. SROI captures the full spectrum of value for all stakeholders including communities and environment. ROI uses market prices and cash flows; SROI requires monetization of non-market outcomes using proxy values. Both express returns as a ratio, but SROI typically yields higher values because it accounts for broader value creation.
What are the seven SROI principles?
The seven principles are: involve stakeholders to understand outcomes that matter, understand what changes by mapping outcomes and evidence, value the things that matter using financial proxies, only include what is material, do not over-claim by accounting for attribution and deadweight, be transparent about methods and assumptions, and verify the result through independent assurance. These ensure credibility.
What is deadweight in SROI calculations?
Deadweight is the proportion of outcomes that would have occurred regardless of the intervention. For example, if 30% of job seekers in a training program would have found employment anyway, this 30% must be subtracted from claimed outcomes. Deadweight is estimated through comparison groups, baseline data, or expert judgment. Failing to account for it leads to inflated SROI ratios.
How does attribution affect SROI results?
Attribution addresses how much of an observed outcome can be credited to the specific intervention versus other contributing factors or organizations. If multiple programs work with the same community, each must claim only its fair share. Attribution is typically estimated as a percentage through stakeholder consultation and analysis of relative contribution. Proper attribution prevents double-counting.
When should organizations conduct SROI analysis?
SROI analysis is valuable when demonstrating accountability to funders, comparing social value of different programs, improving program design by understanding which activities create most value, communicating impact to attract investment, and meeting reporting requirements. SROI can be forecast (before implementation) or evaluative (measuring actual outcomes after delivery).