Return on Investment (ROI) definition

Return on investment is the level of benefit achieved relative to the investment made. ROI is used to judge the success of an initiative or project or to compare the relative worth of comparable projects. It’s also used prior to a project commencing as an indicator of whether green lighting the project is a sound decision for the company.

Social return on investment (SROI) is a related concept that aims to measure the non-monetary value from an initiative, typically focused on benefit to the environment, community and social stakeholders. The concept works the same as ROI as can be used to judge the potential social value of a future initiative.

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