GMROI Calculator

Calculate Gross Margin Return on Investment for retail profitability and inventory optimization

✓ Retail Analytics ✓ Inventory Management ✓ Profitability Analysis

GMROI Calculator

Sales & Cost Information

Total sales revenue for the period
Direct cost of inventory sold

Inventory Investment

Average inventory value at cost

Analysis Settings

About GMROI

GMROI measures how much gross margin is generated for every dollar invested in inventory

GMROI Formula:

GMROI = Gross Margin ÷ Average Inventory Investment

GMROI Benchmarks

Excellent: > 3.0
Good: 2.0 - 3.0
Average: 1.5 - 2.0
Poor: < 1.5

Industry Averages

Fashion/Apparel: 2.5 - 3.5
Electronics: 1.8 - 2.8
Grocery: 3.0 - 4.0
Automotive: 1.5 - 2.5

Quick Examples

Retail Store
$100K sales, $60K COGS
$25K inventory
Fashion Boutique
High margin, fast turnover
Seasonal inventory

GMROI Benefits

Profitability: Measure inventory ROI
Optimization: Identify best-performing products
Purchasing: Guide buying decisions
Pricing: Optimize pricing strategies
Planning: Improve inventory management
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How to Use

  1. Enter your gross sales and cost of goods sold
  2. Input your average inventory investment
  3. Select calculation method and time period
  4. Choose your business type for benchmarking
  5. Calculate to see GMROI and detailed analysis
  6. Review recommendations for optimization

GMROI Interpretation

High GMROI (> 3.0)

Excellent inventory efficiency and profitability.

Good GMROI (2.0-3.0)

Solid performance with room for optimization.

Low GMROI (< 1.5)

Poor inventory efficiency - needs immediate attention.