Formula
- Use the units shown beside each field.
- Results update automatically whenever you change an input.
- Displayed values use up to four decimal places, or scientific notation for very small or large numbers. Calculations use standard floating-point arithmetic; exact integer and fraction tools identify their own precision rules.
- Inventory measured at cost, not retail selling price. Annual gross profit before unlisted operating costs.
Example Calculation
- Annual gross profit: 120
- Average inventory cost: 60
Annual gross profit = 120; Average inventory cost = 60. The primary result is 2.
Frequently asked questions
How do I use this calculator?
Enter annual gross profit, average inventory cost. The result updates automatically. Use Reset to restore the example values.
What method does it use?
GMROI=annual gross profit/average inventory at cost.. Inventory measured at cost, not retail selling price. Annual gross profit before unlisted operating costs.
Why might a rounded result differ?
The calculation keeps full numeric precision internally, then rounds the displayed result. Rounding intermediate steps by hand can produce a slightly different answer.
Are my inputs saved online?
No. This calculator processes your inputs in your browser. A recently used list stores only calculator names on this device, not your entered values.
Check the assumptions and units before using this result. Read about calculation methods.