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GMROI Calculator

Enter gross margin and average inventory cost to get your GMROI.

How to use

  1. Enter your values in the fields above.
  2. Press Calculate to see your result instantly.
  3. Use the Share button to copy a link to your result.

About this calculator

GMROI (gross margin return on inventory investment) is gross margin dollars ÷ average inventory cost — it answers a very specific retail question: for every dollar tied up in inventory, how many dollars of gross profit does it generate?

Retail buyers and merchandisers use it to compare categories or SKUs that look similar on margin percentage alone but tie up very different amounts of working capital — a high-margin item that sits on shelves for months can actually return less per dollar invested than a lower-margin item that turns over quickly, and GMROI is the metric that exposes that difference.

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