Free GMROI calculator

This free GMROI calculator shows how many dollars of gross margin you earned for every dollar held in stock. Enter 12 months of sales and cost of goods sold, with your average inventory at cost. It runs in your browser.

GMROI calculator

Net sales, 12 months ($)Cost of goods sold, 12 months ($)Average inventory at cost ($)

Estimates for planning only. Results depend entirely on the numbers you enter. Nothing you enter is stored or sent.

The GMROI formula

GMROI = (sales − cost of goods sold) ÷ average inventory at cost

A worked example

A store has sales of $500,000, cost of goods sold of $300,000 and average inventory of $80,000 at cost. Gross margin is $200,000, so GMROI is 2.50. Every dollar of stock earned $2.50 of gross margin in the year. For more detail, read our guide to the GMROI formula.

Frequently asked questions

Is GMROI a percentage?

It is usually shown as a ratio or a dollar figure, such as 2.5 or $2.50. You can multiply by 100 to show it as 250%, but say which you are using.

What is a good GMROI?

There is no single benchmark. A common rule of thumb treats anything above 1 as the baseline and 2 to 3 as a good result, but it varies by category.

How should I work out average inventory?

Average your stock at cost across the same 12 months, using month-end figures if you can. A single year-end figure can mislead.

Want GMROI for every item, store and category? Store health in the Optimization Lab works it out from your point-of-sale exports.

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