P&L Playbook for eCommerce by ex-SUGAR & Raymond Leader

GMROII Calculator

Use this tool to measure how much gross margin you earn for every rupee invested in inventory.

Calculate Your GMROII

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Formula: GMROII = Gross Margin / Average Inventory

What is GMROII?

GMROII is a profitability ratio that evaluates how efficiently inventory generates gross margin. It's expressed as gross profit per rupee of inventory investment.

Why is This Important?

A higher GMROII indicates better use of capital, guiding smarter buying and pricing strategies to maximize return on inventory.