The worked example – calculating the SROI
(discounting and net present value)
Look at the Impact Map for Wheels-to-Meals on page 105: the green section shows
you the value of the discounted benefits.
Using Excel and the NPV function, the total present value of our example has been
calculated following the above method. Wheels-to-Meals also used the 3.5%
discount rate.
Total present value = £81,741.93
Net present value total present value - total inputs
£81,741.93 - £42,375 = £39,366.93
SROI total present value / total inputs
£81,741.93 / £42,375 = £1.93: £1
So for Wheels-to-Meals, there is £1.93 of value for every £1 of investment.
5.4 Sensitivity analysis
One of the strengths of setting up a spreadsheet is that it is possible to assess the
importance of elements of the model relatively easily; by altering the figures, the
spreadsheet will make all the changes to the calculation for you. After calculating the
ratio, it is important to assess the extent to which your results would change if you
changed some of the assumptions you made in the previous stages. The aim of such an
analysis is to test which assumptions have the greatest effect on your model.
The standard requirement is to check changes to:
• estimates of deadweight, attribution and drop-off;
Stag
• financial proxies;
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e
• the quantity of the outcome; and
e
 
• the value of inputs, where you have valued non-financial inputs.
The recommended approach is to calculate how much you need to change each
estimate in order to make the social return become a social return ratio of £1 value
for £1 investment. By calculating this, the sensitivity of your analysis to changes in
estimates can be shown. This allows you to report the amount of change necessary to
make the ratio change from positive to negative or vice versa.
We are interested in which changes have a significant impact on the overall
ratio. It is these that you would consider as potential priority areas in managing
the value you are creating. For example, if your result is sensitive to changes in a
particular indicator you may want to prioritise investment in systems to manage
(and resources to improve performance in) that indicator.
A guide to Social Return on Investment 
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