Inventory Turnover Calculator
Calculate how many times your inventory is sold and replaced per year.
This tool runs entirely in your browser. Your files are never uploaded to a server.
6.00x
Inventory turnover ratio
61 days
Days in inventory
What this calculator does
Estimates how many times inventory turns over during a year and converts that ratio into approximate days in inventory. It uses annual cost of goods sold (COGS) and average inventory measured on the same cost basis.
How to use it
Enter annual COGS and the average inventory value for that same period. Results update immediately; both inputs should use one currency, while the outputs are a turnover multiple and a rounded number of days.
Worked example
The default values are 120,000 annual COGS and 20,000 average inventory. Dividing them gives 6.00 inventory turns; 365 divided by 6 equals about 60.8, displayed as 61 days in inventory.
Formulas used
Inventory turnover ratio equals annual COGS divided by average inventory value. Days in inventory equals 365 divided by the turnover ratio, using a 365-day year and rounding the displayed day count to a whole number.
Choosing average inventory
A simple estimate is beginning inventory plus ending inventory divided by two, valued at cost. For seasonal or fast-changing operations, averaging monthly or more frequent balances can better represent inventory held during the year.
Limitations
The calculator assumes an annual period and does not adjust for seasonality, write-downs, stockouts, product mix, or changing accounting methods. Average inventory must be positive; zero or negative COGS produces no meaningful days value.
Interpretation and privacy
A higher ratio may reflect efficient sales or insufficient stock, while a lower ratio may reflect deliberate buffers or slow movement; useful benchmarks depend on category and business model. Inputs are processed locally and not uploaded.
Frequently Asked Questions
- What is a good inventory turnover ratio?
- It varies by industry — fast-moving retail often targets 6-12+ turns per year, while slower categories may be healthy at 2-4.
- How do I find my average inventory value?
- A simple estimate is (beginning inventory + ending inventory) / 2 for the period you're measuring.
- Why does low turnover matter?
- Low turnover can signal overstocking, tied-up cash, or slow-moving products — high turnover can signal strong sales or too little stock on hand.