Return on Investment

What do the results mean?

1) Ratio of Library Benefits to Spending
The "Grand Total Benefits of Library Circulation & Services" shows the market value of circulation and library services at your library. This figure is compared with your library's 2022 Total Operations spending to create a ratio of Direct Library Benefits to spending in your community. This figure is the initial measure of the Return on Investment of your library and is shown the Direct Benefit to Spending Ratio. Your library's ratio of benefits to spending is X.XX, meaning that for every $1.00 spent by your library, your community received $X.XX in direct benefits from using library materials and services.

2) Economic Multiplier Effects
The "BEA Household Consumption Multiplier" is a figure that was developed by the Bureau of Economic Analysis to calculate the economic benefits of household consumption. The multiplier indicates that every time a consumer spends $1.00 in Ohio, an additional 28 cents in economic activity is generated. Libraries allow users to save money by borrowing items and receiving services that they would otherwise have to rent or purchase. This means that libraries enhance the purchasing power of users by enabling them to spend their money in other ways. The true impact of libraries on the economy will include the multiplier effects of this freed up consumer spending. Your library's ratio of benefits including economic multiplier effects to spending is X.XX, meaning that for every $1.00 spent by your library, the total economic benefit provided to your community is $X.XX.

3) Not every library program or service is included in the calculator
The intention of the ROI Calculator is to quantify the benefits provided by Ohio's 251 public library systems in a simple and understandable fashion. Some services and programs have been omitted from this calculator (i.e. storytime, resume and job search workshops, GED training and testing, etc.). While the services and programs that have been omitted tend to be harder to quantify than those that have been included, that does not mean that they do not have value. The fact that there are many library services and programs that are not included in the ROI calculator actually strengthens the findings produced by the calculator. Whatever your library's return on investment computes to be, it is an understatement of the true value provided by your library to your community.