📦 Inventory Turnover Calculator
Inventory turnover shows how many times a business sells and replaces its stock in a period. Higher usually means less cash tied up in inventory.
How the Inventory Turnover Calculator works
Cost of goods sold for the period is divided by the average inventory value. Days of inventory is the number of days in the period divided by the turnover.
Step-by-step calculation
- 1Enter cost of goods sold.
- 2Enter beginning and ending inventory.
- 3Divide COGS by average inventory.
Worked example
COGS of $500,000 with inventory of $80,000 at the start and $120,000 at the end: average $100,000, turnover 5 times, about 73 days of inventory.
Inventory Turnover Calculator examples
| Cost of goods sold for the year ($) | Inventory turnover |
|---|---|
| 250,000 | 2.5 times |
| 375,000 | 3.75 times |
| 500,000 | 5 times |
| 625,000 | 6.25 times |
| 750,000 | 7.5 times |
Other inputs kept at the calculator's default values. Results calculated by this calculator.
Why use an Inventory Turnover Calculator?
See how fast stock sells and how much cash is tied up.
Important factors that can affect your results
- Seasonal stock levels.
- Industry norms.
- Valuation method (FIFO, LIFO).
Frequently asked questions
What is a good turnover ratio?
It depends on the industry. Grocery stores turn stock very fast, while furniture or jewelry stores turn it slowly.
Should I use sales instead of COGS?
COGS is more accurate because inventory is valued at cost.
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Last reviewed November 2026 · How we build and check our tools · Report a problem