GMROI Calculator (Gross Margin Return on Investment)
Enter your gross margin and average inventory cost to see how many dollars of margin each inventory dollar returns.
- Free
- No sign-up
Enter gross margin and average inventory cost to see GMROI.
Worked example
With these example inputs:
- Gross margin$50,000
- Average inventory cost$25,000
GMROI: 2
- The other way round0.50
- As a percentage200.0%
- If the first figure were 10% higher2.20
Frequently asked questions
How is GMROI calculated?
Divide gross margin by the average inventory cost. $50,000 of margin on $25,000 of inventory gives a GMROI of 2.0, meaning $2 of margin per inventory dollar.
What is a good GMROI?
A GMROI above 1.0 means inventory earns more than it costs to hold. Retailers often aim well above that, though healthy levels vary widely by industry and margin structure.