GMROI.

The single number that tells you how hard your inventory dollars work. Every $1 tied up in stock — how many gross-margin dollars does it return?

GMROI CALCULATOR

MAKE STOCK
WORK.

Annual revenue ($)

Annual COGS ($)

Avg inventory (cost, $)

$2.22

Gross margin $ per $1 of inventory

Gross margin $$200,000

Gross margin %40.0%

Inventory turns3.33×

Avg inventory (cost)$90,000

HOW IT WORKS

Turn revenue, cost of goods, and your average inventory into GMROI — how many gross-margin dollars each inventory dollar returns.

Enter your numbers

Type annual revenue, annual COGS, and the average value of inventory you hold at cost.

We compute GMROI

Gross margin $ = revenue − COGS. GMROI = gross margin $ ÷ average inventory cost. Turns = COGS ÷ average inventory.

Use the result

Above $1 means the category earns more than it ties up. Compare GMROI across lines to see where your capital works hardest.

Put this on your site

Paste one line and the live gmroi calculator runs on your page, free, with a link back here. No account, no key, nothing to update.