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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.

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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.

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