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AU Business Analysis

General Retail ROI Calculator

Analyse fashion, gift, homewares and general retail economics.

General retail shops cover everything from boutique fashion to homewares. The common thread: inventory management is the difference between profit and loss.

Wages % of revenue
10–20%
Typical range
Rent % of revenue
5–10%
Typical range
COGS % of revenue
45–65%
Typical range
Net margin %
5–12%
Healthy band

Sources: ATO Small Business Benchmarks — Retail trade · IBISWorld — Retail Trade in Australia

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1

Business Details

2

Revenue

3

Annual Expenses

4

Purchase & Loan

5

Owner Details

Owner salary already in expenses?
Toggle off to deduct a replacement wage.
6

Scenario Testing

Sales Drop0%
Rent Increase0%
Wage Increase0%
Interest Rate Rise0pp
Live Analysis

General Retail

Retail · benchmarks: Australian industry data

HealthyLow Risk
Net Profit
$69,900
Margin 7.9%
EBITDA
$144,900
Before owner & loans
ROI
29.1%
Payback 3.4 yrs
DSCR
3.18
Debt cover ratio
Monthly Repayment
$3,801
$45,609 p.a.
Cashflow After Loan
$24,291
Break-even Revenue
$816,664
$15,705/week
Owner Earnings
$144,900
Profit + replacement salary

Investment Risk Score

100/100
Low Risk

Higher score = safer investment

Revenue Breakdown

  • COGS53.4%
  • Wages16.5%
  • Rent8.5%
  • Other13.6%
  • Net Profit7.9%

Industry Benchmarks · Retail

vs Australian averages
Wage RatioHealthy
16.5%
Benchmark: 10%–20%
Rent RatioHealthy
8.5%
Benchmark: 5%–10%
COGS RatioHealthy
53.4%
Benchmark: 45%–65%
Net MarginHealthy
7.9%
Benchmark: 5%–12%

Loan Repayment Projection

Outstanding balance over loan term

Insights

Strengths
  • • Net margin 7.9% is within healthy range for Retail.
  • • Strong ROI of 29.1% relative to asking price.
  • • DSCR of 3.18 indicates comfortable loan serviceability.
Weaknesses
  • No major weaknesses detected.
Red Flags
  • No red flags.
Buyer Questions
  • • Can you provide 3 years of tax returns and BAS statements?
  • • What is the remaining lease term and rent review schedule?
  • • Are there any key staff dependencies or pending resignations?
  • • How transferable are supplier and franchise agreements?
  • • Why is the current owner selling?
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General information only. This calculator provides general information only and does not take into account your personal circumstances, financial situation, objectives, taxation position, or business needs. Please seek independent professional advice before making financial or business decisions.

What makes a healthy General Retail business?

Stock turn (how many times you sell through your inventory per year) is the single biggest driver of profitability. Aim for 4–6× depending on category.

Online competition is real. Bricks-and-mortar retail needs an experience, curation or convenience edge that Amazon can't replicate.

Markdowns hide in 'gross margin' figures — always ask for full-price vs sale revenue splits.

Typical asking-price multiple

1.5× – 2.5× SDE (Seller's Discretionary Earnings). Specialty retail with strong brand IP can exceed 3×.

Red flags
  • • Stock turn below 3× per year
  • • Markdowns > 20% of revenue
  • • Lease in declining centre or strip
  • • Online sales > 50% with logistics not transferring cleanly
Green flags
  • • Strong full-price sell-through (markdowns < 10%)
  • • Loyal customer database with email marketing
  • • Branded or exclusive product lines
Key due-diligence questions
  • 1. What's the stock turn by category?
  • 2. What % of revenue is at full price vs markdown?
  • 3. Can I see the customer database and email open rates?

Frequently asked questions