This tool runs in your browser. None of your data is saved or sold.
GMROI Calculator
Estimate GMROI from gross margin and average inventory cost.
About This Calculator
GMROI (Gross Margin Return on Investment) measures how many dollars of gross profit you earn for every dollar of average inventory investment. It combines margin and turnover into a single metric, making it the most useful number for evaluating product-level profitability in retail and wholesale businesses.
Estimates only — not financial, tax, legal, or investment advice. Verify important results with a qualified professional before making decisions.
GMROI = annual gross margin ÷ average inventory cost
Related calculators: Inventory Turnover Calculator, Gross Profit Calculator, Profit Margin Calculator, Markup & Margin Calculator