What Is Gross Margin? A Complete Guide for Retailers
Gross margin is the single most-quoted profitability metric in retail. This guide explains the formula, benchmarks by category, and the practical levers that move it.
Calculate return on investment for any retail project, marketing campaign, or capital purchase.
Total return or revenue generated.
ROI
50.00%
Net Return
$5000.00
Gain
$15000.00
Cost
$10000.00
Formula Used
((Gain − Cost) ÷ Cost) × 100
((Gain − Cost) ÷ Cost) × 100
ROI expresses the profit or loss made on an investment relative to its cost, as a percentage.
A retailer invests $10,000 in a seasonal display and generates $15,000 in incremental revenue. ROI = ((15000 − 10000) ÷ 10000) × 100 = 50%.
Typically 10–20%+ is considered healthy for store projects. Marketing campaigns often aim for 3–5x ROAS.
Basic ROI does not. For multi-year investments, use annualized ROI or IRR.
Yes — a negative ROI means the investment lost money.
Deep-dive guides that explain the math behind this calculator.
Gross margin is the single most-quoted profitability metric in retail. This guide explains the formula, benchmarks by category, and the practical levers that move it.
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