IT×

Inventory Turnover Calculator

Works out how many times stock sells through in a period, and the days it sits on the shelf.

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Result…

$

For the period, usually a year.

$
$
days

 

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How it's calculated

Turnover = cost of goods sold ÷ ((beginning + ending inventory) ÷ 2)
Days of inventory = days in period ÷ turnover

Higher turnover means stock sells faster and less cash is tied up, but too high can mean empty shelves. What counts as good depends heavily on the trade: groceries turn over far faster than furniture. Compare with your own past periods and businesses like yours.

Your numbers, step by step

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