About

Social organizations often struggle to quantify their impact in terms that investors or government bodies understand. The SROI (Social Return on Investment) framework solves this by assigning monetary proxy values to non-financial outcomes - such as improved mental health, reduced crime, or educational attainment. This tool bridges the gap between social work and business management, allowing changemakers to prove the economic viability of their initiatives.

Accurate SROI calculation is critical for securing grants and funding. It moves the conversation from "doing good" to "generating value." By inputting investment costs and selecting observed outcomes, this calculator applies standard financial discounting to determine the net value created per dollar spent. It is particularly useful for community centers, NGOs, and social enterprises needing to demonstrate a tangible return on capital.

Formulas

The Social Return on Investment (SROI) is calculated by comparing the Net Present Value (NPV) of benefits to the value of the investment. The formula uses a ratio approach:

SROI = NPV(Benefits)NPV(Investment)

Where the Value of Benefits is the sum of all outcomes multiplied by their proxy financial values. A ratio of 3:1 means that for every $1 invested, $3 of social value is created.

Reference Data

Outcome Category	Proxy Metric	Est. Value (USD)	Rationale
Employment	Full-time Job Obtained	$24,500	Annual welfare savings + tax contribution.
Education	Vocational Training (1 hr)	$25	Market rate for specialized tutoring.
Health	Mental Health Improvement	$4,200	Avoided cost of therapy/medication per year.
Community	Volunteering (1 hr)	$15	Based on minimum wage replacement cost.
Youth	School Dropout Prevention	$11,000	Future earning differential (yearly).
Justice	Recidivism Avoided	$45,000	Annual cost of incarceration.
Housing	Homelessness Prevention	$18,500	Shelter and emergency service savings.
Family	Family Counseling (Session)	$120	Private sector therapy rate.

Frequently Asked Questions

A proxy is an estimate used when an exact market price does not exist. For example, increased confidence doesn't have a price tag, but we can use the cost of "Life Coaching Sessions" as a proxy to represent the monetary value of that outcome.

Yes, SROI is a standard methodology (often associated with the Seven Principles of Social Value) used globally by impact investors, governments, and foundations to assess the efficiency of grants.

Absolutely. Businesses with Corporate Social Responsibility (CSR) programs use SROI to measure the impact of their community engagement, justifying the expense to shareholders.

Deadweight refers to outcomes that would have happened anyway without your intervention. In a full professional audit, you subtract a percentage for deadweight. This calculator provides a gross estimate; for strict reporting, reduce your input quantities to account for external factors.