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.