Inventory Turnover Calculator
Work out how many times a year you sell through your stock and how many days it sits, plus the cash a higher turnover would free.
- Free
- No sign-up to try
- Works as you type
Inventory turnover
Inventory turnover
6.00x
Days of inventory
60.8 days
Average inventory
$150,000
Cash freed at the target turnover
$37,500
- Average inventory = (start + end) ÷ 2.
- Turnover = cost of goods sold ÷ average inventory.
- Days of inventory = 365 ÷ turnover.
- Cash freed = average inventory now − cost of goods sold ÷ target turnover.
Free, no sign-up to try. Save it as a live calculator you can share; an estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.
How it works
How the Inventory Turnover Calculator works
- 1
Enter your numbers
Every result updates as you type, with the formula shown under it.
- 2
Check the method
See how each number is worked out and what it assumes.
- 3
Save it as a Room
Share a live calculator: others can change the numbers and see the result update.
Worked example
What it makes
Example inputs
- Cost of goods sold for the year
- $900,000
- Inventory at the start (at cost)
- $160,000
- Inventory at the end (at cost)
- $140,000
- Target turnover
- 8 x
Results
- Inventory turnover
- 6.00x
- Days of inventory
- 60.8 days
- Average inventory
- $150,000
- Cash freed at the target turnover
- $37,500
How it's calculated
- Average inventory = (start + end) ÷ 2.
- Turnover = cost of goods sold ÷ average inventory.
- Days of inventory = 365 ÷ turnover.
- Cash freed = average inventory now − cost of goods sold ÷ target turnover.
- Assumes: Inventory and cost of goods are both at cost, for the same 12 months.
- Assumes: Two balances can miss seasonal peaks: use a monthly average if stock swings a lot.
An estimate from the numbers you enter, not financial advice. Check the result against your own records before you rely on it.
Who it's for
Who uses it
Store owners
See how much cash is sitting on the shelves.
Operations managers
Set a turnover target and size what it frees up.
Students
Check inventory turnover homework with the method.
Good to know
What to consider
- Inventory and cost of goods must both be at cost and for the same year.
- Two balances can miss seasonal peaks; use a monthly average if stock swings a lot.
Questions
About the Inventory Turnover Calculator
Why use cost of goods sold, not sales?
Inventory is valued at cost, so dividing cost of goods sold by it compares like with like. Using sales mixes in your margin and makes turnover look higher.
Can I share the calculator with my team or a client?
Yes. The Room keeps the calculator live: anyone with the link can change the numbers and see the result update, with the method and assumptions on the same page.
Make your calculator now
Free, no sign-up to try. It becomes a Room you can edit, publish and share.
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