Retail Math Formulas Cheat Sheet
This is a free cheat sheet of the most important retail math formulas used in retail & e-commerce businesses. Each retail math formula is explained in more details with examples in the article linked to it.
You can also download the retail math formulas excel calculators & a printable cheat sheet (PDF) for free.
RETAIL MATH FORMULAS BY CATEGORY
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ATV = Total Sales ÷ No. of Transactions
IPC = Total Quantity Sold ÷ No. of Transactions
Conversion = No. of Transactions ÷ Traffic
Measures the number of customers who entered the store
Traffic = Total number of visits to the store
SPSF = Sales ÷ Area in Square feet
LFL (%) = (TY - LY) ÷ LY x 100
Gross Margin (%) = (Sales - Cost) ÷ Sales x 100
Markdown (%) = (Original Price - Sale Price) ÷ Original Price x 100
Markup (%) = (Sale Price - Cost Price) ÷ Cost Price x 100
Open to Buy (OTB)
Opening Stocks + Intakes (Purchases) - Sales = Closing Stocks
GMROI = Gross Profit ($) ÷ Average Inventory Cost($)
Sell Thru (%) = No. of units sold ÷ No. of units received x 100
Aging (%) = Aging Inventory at Cost ÷ Total Stock at Cost x 100
IT= COGS ÷ Average Inventory at Cost
DSI= (Average Inventory at Cost ÷ COGS ) x 365
Shrinkage % = (Value of Lost Stock ÷ Total Sales for the period ) x 100
Forward Stock Cover
Forward Stock Cover = SOH ÷ Average Forward COGS
Earnings Before Interest, Taxes, Depreciation & Amortization
EBITDA = Net Profit + Interest + Taxes + Depreciation + Amortization
Net Profit Margin
Percentage of Net profit out of total sales
NP % = (Net Income ÷ Revenue ) x 100
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