Free tool
Inventory turnover calculator
Enter your cost of goods sold and your inventory at the start and end of the period. See how often you turn inventory and how long it sits.
Your numbers
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How it works
How it works
Average inventory is the start and end values added together and divided by two. Turnover is cost of goods sold divided by average inventory. Days on hand is the days in the period divided by turnover.
FAQ
About this calculator
What is inventory turnover?
It shows how many times you sell and replace your inventory in a period. Divide cost of goods sold by your average inventory.
How do I find average inventory?
Add the inventory value at the start and the end of the period and divide by two. For seasonal businesses, averaging more points gives a better picture.
Is a higher number always better?
Not always. Slow turnover ties up cash, but a very high number can mean you run out of stock and miss sales. Compare against similar businesses and your own history.
What are days of inventory on hand?
The days in the period divided by the turnover. It estimates how long a typical item sits before it sells.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Pricing for profit? Use the profit margin and markup calculator and read gross margin vs markup. Guide: inventory turnover explained. More free tools: EBITDA calculator, Employee cost calculator, Price per unit calculator, or see all free tools.
Free
Month-End Close Checklist (PDF)
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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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