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Gross Margin Return on Inventory (GMROI) Calculator

How many dollars of gross profit per dollar of inventory.

GMROI = Gross Margin ($) / Average Inventory Cost ($). A ratio > 1 means every dollar in inventory earns more than $1 in gross profit annually.

Daniel Oh By Daniel Oh
Published Last reviewed 1 min read

Inputs

$
$

Results

Enter values and click Calculate to see results.
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How to use this calculator

  1. Fill in the inputs above using the units you already have.
  2. Values update automatically as you type — no submit button needed.
  3. Hover any result row for the underlying formula and intermediate values.

Formula

GMROI = Gross Profit / Avg Inventory

In depth

GMROI = Gross Margin ($) / Average Inventory Cost ($). A ratio > 1 means every dollar in inventory earns more than $1 in gross profit annually.