ClarityKitFind a tool
Business

GMROI Calculator

Measure gross margin earned per unit of average inventory cost.

Use a consistent reporting periodCheck the calculation below
Business dashboard
Business dashboard

Use figures from the same reporting period.

See the method

Enter your business figures

Runs on your device

Your key metric

Your result

Let’s calculate.

Use the Calculate button to see your result.

Review the method below for assumptions and conventions.

How to use this tool

  1. Enter period gross margin, average inventory at cost.
  2. Select Calculate to view the result.
  3. Check the method and assumptions below before using the result.

The method, explained

GMROI = gross margin / average inventory cost.

A WORKED EXAMPLE

Using period gross margin = 60000 currency, average inventory at cost = 40000 currency, the result is 1.5. Change these example inputs to match your task; use the method above to check each step.

Understanding your result

Both values must refer to the same period. Use gross margin in currency, not gross margin percentage, and inventory valued at cost.

What to keep in mind

Both values must refer to the same period. Use gross margin in currency, not gross margin percentage, and inventory valued at cost. Use consistent currencies, reporting periods and accounting definitions. This arithmetic estimate excludes items not entered in the form.

Common questions

How do I use this gmroi calculator?

Measure gross margin earned per unit of average inventory cost. Enter period gross margin in currency, average inventory at cost in currency. The starting example is editable; use values for the same system or project.

Which assumptions affect this result?

Both values must refer to the same period. Use gross margin in currency, not gross margin percentage, and inventory valued at cost.

Methodology maintained by ClarityKit. How these tools are built and checked.