Inventory Turnover Calculator
Measure how quickly your stock sells. Enter the cost of goods sold for a period, the inventory value at the start and end of it and the number of days. The calculator works out the average inventory, the turnover ratio – how many times the stock was sold and replaced – and the days sales of inventory, the average number of days an item waits on the shelf.
- Runs in your browser
- No sign-up
- Free to use
A good turnover depends on the industry: groceries turn weekly, furniture a few times a year.
How to use Inventory Turnover Calculator
- Enter cost of goods sold for the period.
- Enter starting and ending inventory at cost.
- Enter the number of days.
- Read turnover and DSI.
Inventory Turnover Calculator features
Turnover ratio
Times stock is sold per period.
Days of inventory
Average days on the shelf.
Any period
Month, quarter or year.
Monthly turns
For comparison.
Formula shown
Every result explains how it was calculated.
Any currency
Choose from 30+ currencies; amounts are formatted for it.
When to use Inventory Turnover Calculator
- Retail and ecommerce stock reviews.
- Comparing product categories.
- Bank and investor reporting.
- Reducing cash tied up in stock.
Inventory Turnover Calculator FAQ
What is a good turnover?
It depends on the industry: fresh food may turn more than 20 times a year, furniture three or four. Compare with your own history and similar businesses.
Why use cost of goods sold, not sales?
Inventory is valued at cost, so dividing cost by cost keeps the ratio consistent.
What does a high DSI mean?
Stock sits for a long time, tying up cash and risking obsolescence.
Can turnover be too high?
Very high turnover can mean frequent stock-outs.
Turning stock into cash
Every day an item waits on the shelf costs money in storage, insurance and capital. Higher turnover frees cash and lowers the risk of unsold stock, as long as customers can still find what they want.
Calculate turnover by category: fast and slow movers averaged together hide problems.
Re-run the numbers whenever an input changes – a supplier raises prices, a fee is updated or demand shifts – because small changes in costs or volumes often have a large effect on the result.
The calculator is deliberately simple: it uses the figures you enter and shows the arithmetic, so you can follow every step and repeat it in a spreadsheet when you want to build a fuller model.