Inventory turnover calculator
How many times you sell through your inventory in a year, and how long stock sits on the shelf. It opens on a worked example — change any number. Nothing you enter is saved.
Inventory turnover
6×
- Average inventory
- $50,000
- Days inventory
- 60.8 days
The formula
- Inventory turnover = COGS ÷ average inventory
- Days inventory = 365 ÷ inventory turnover
How to read it
Higher turnover usually means leaner stock, but too high can mean stockouts. Compare against your own history and similar businesses rather than a single target.
Definitions, a full worked example and common pitfalls are in our guide: Inventory Turnover and Days Inventory: Balancing Stock.
General information, not accounting, tax or financial advice. Definitions vary between companies — match the formula to how your own systems count.