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GMROI Calculator – Gross Margin Return on Investment
See how much gross profit you generate for every dollar invested in inventory with the GMROI (Gross Margin Return on Investment) calculator.
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What is GMROI?
Gross Margin Return on Investment (GMROI) is a retail and inventory-management metric that shows how much gross profit a business earns for every dollar it has invested in inventory.
The formula
GMROI = Gross Margin ($) / Average Inventory Cost ($). A GMROI above 1.0 (or above the retailer’s cost markup) generally means inventory is being sold profitably; a low GMROI can signal overstocking or weak margins.
This is a general retail-planning metric and does not account for other operating costs.
Last reviewed August 2026