Inventory turnover calculator
How many times inventory is sold and replaced in a period, and the days it sits in stock.
Enter your values and press Calculate. Your inputs stay in the address, so you can switch language or share the link.
Formula
turnover = COGS ÷ average inventory days = 365 ÷ turnover
How it works
Divide COGS by average inventory to get turnover; 365 divided by turnover gives the average days an item stays in stock.
Worked example
The same calculation with the default values:
- COGS for the year 480,000
- Beginning inventory 90,000
- Ending inventory 110,000
- average inventory = (90,000 + 110,000) ÷ 2 = 100,000
- turnover = 480,000 ÷ 100,000 = 4.8
- days = 365 ÷ 4.8 = 76.041667
Result: Average inventory: 100,000.00 USD · Inventory turnover: 4.8 × · Days in inventory: 76.04166667 days
Use annual figures. For a shorter period, replace 365 by the number of days in it.
Common mistakes
- Using ending inventory alone instead of average inventory (beginning plus ending, divided by two) - ending inventory alone can be skewed by a single large purchase or sale right before the period closes.
- Comparing turnover ratios across very different industries - a grocery store and a jewelry store have structurally different, equally "healthy" turnover rates.
- Treating a higher turnover as always better - extremely high turnover can also mean understocking and lost sales from running out of popular items.
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