Finance

GMROI Calculator

Calculate how much gross profit you earn for each dollar invested in inventory.

Annual Gross Profit ($)

Average Inventory Cost ($)

Annual Revenue ($)

For gross margin % calculation

Formula:
GMROI = Gross Profit / Average Inventory at Cost
Also: GMROI = Gross Margin % × Inventory Turnover
Target: GMROI > 3.0 for healthy retail

What is GMROI?

GMROI tells retailers and wholesalers how much gross profit they earn for each dollar tied up in inventory. A GMROI of 3.0 means you earn $3 in gross profit for every $1 of average inventory.