Free tool
Inventory turnover and days of inventory calculator
See how many times you sell through your stock and how long it sits.
Prefer to talk it through? Take the free books check or contact us.
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How it works
How it works
Average inventory = (beginning + ending inventory) divided by 2. Inventory turnover = cost of goods sold divided by average inventory. Days of inventory = days in the period divided by turnover. Use cost, not selling price, for both inventory and cost of goods sold.
FAQ
About this calculator
Is a higher turnover always better?
Not always. Very high turnover can mean stockouts and lost sales. Very low can mean cash tied up in slow stock. Compare your own periods and similar businesses.
Why use cost instead of price?
Inventory is recorded at cost, so cost of goods sold is the matching figure.
What if my stock is seasonal?
Use a full year or average several month-end counts, because one low or high month can skew the result.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Is this tax or financial advice?
No. It is a calculator for general information. Check the numbers against your own records, and ask an accountant before you act on them.
Related: reorder point and safety stock calculator, economic order quantity calculator, inventory tracker reorder workbook. See all free tools. More free tools: Retained earnings calculator, Employee turnover rate calculator, Conversion rate calculator, or see all free tools.
Free
Month-End Close Checklist (PDF)
The five-day close, one page to print. Enter your email and we send a link to confirm it is yours, then the download. We may email you about new toolkits, and every email has an unsubscribe link.
General information, not tax or legal advice. How we write and check our tools.
Excel workbook
Inventory Tracker and Reorder Workbook
Log what comes in and goes out and see what you have, what it is worth, what to reorder and what has not sold.
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