Calculating SROI involves several steps: 1. Identify Stakeholders: Determine who will be affected by the organization's activities. 2. Map Outcomes: Define the social, environmental, and economic outcomes of the organization's activities. 3. Measure Outcomes: Quantify these outcomes in terms of indicators and data collection. 4. Monetize Outcomes: Assign monetary values to these outcomes, often using proxies or comparable market values. 5. Calculate SROI Ratio: Divide the total value of outcomes by the total investment to get the SROI ratio.
For example, an SROI ratio of 3:1 indicates that for every dollar invested, three dollars of social value are created.