// Tools

GMROI calculator

GMROI (gross margin return on inventory) is how many gross-margin dollars you earn per dollar of inventory — gross margin ($) ÷ average inventory at cost. A result above 1.0× means margin exceeds the inventory investment.

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Enter net sales, COGS, and average inventory to see GMROI.
// How it works
  1. 01
    Enter net sales and COGS
    Net sales and cost of goods sold for the period.
  2. 02
    Enter average inventory at cost
    Average inventory value at cost over the same period.
  3. 03
    Read GMROI
    GMROI = gross margin ($) ÷ average inventory at cost. Above 1.0× means margin exceeds the inventory investment.

GMROI is most actionable at the category and class level, tracked against plan. RetailNorthstar surfaces it where buying decisions happen — see more retail tools.

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