Free calculator

GMROI Calculator

See how much gross profit each dollar of inventory returns.

Gross Margin Return on Inventory Investment (GMROI) ties margin and turnover together into one number: the gross profit you earn per dollar tied up in stock. Enter gross margin and average inventory cost.

Results update when you click Calculate or change a value.

GMROI

GMROI = gross margin dollars / average inventory cost

How it works

A GMROI of 3.0 means every dollar invested in inventory returns three dollars of gross margin. Below 1.0 means a product is losing money on the inventory it consumes. It's the metric that settles arguments about whether a SKU earns its shelf space.

GMROI rewards products that are either high-margin or high-velocity -- ideally both. Skuwell surfaces GMROI alongside turnover and sell-through so buying decisions weigh profitability and speed together.

Next step

Skuwell does this math for every SKU, automatically.

Reorder points, safety stock, turnover, and GMROI — computed live and turned into purchase orders. See it on a 30-minute walkthrough.

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