SKU Profitability Calculator
Analyse SKU profitability with this free tool. Calculate margin, turnover, and inventory ROI to optimise your e-commerce catalogue. Export results, edit inputs, and make better inventory decisions
SKU Profitability Calculator
All values are yearly totals.
Count how many units of each SKU you had in stock at the beginning and end of the year. Multiply by the cost per unit:
Inventory Value = Units in Stock × Unit Cost
Then use this formula:
Average Inventory Value = (Beginning Inventory Value + Ending Inventory Value) / 2
COGS: Total yearly cost of producing or acquiring the goods sold (including purchase cost, freight, and handling).
Gross Margin %: ((Selling Price - COGS) / Selling Price) × 100 — measures profitability per unit sold.
Inventory Turnover (Yearly): COGS / Average Inventory Value — shows how many times inventory is sold and replaced annually.
Inventory ROI (Yearly): Gross Margin % × Inventory Turnover — combines margin and turnover to measure return on inventory investment.
Input Summary
| SKU | COGS | Price | Begin Inv | End Inv | Units Sold | Actions |
|---|
Results
| SKU | Gross Margin % | Inventory Turnover (Yearly) | Inventory ROI (Yearly) |
|---|
