Inventory Turnover Calculator
How fast does your stock sell? Calculate inventory turnover and days-sales-of-inventory to judge efficiency and cash tied up in goods.
Inventory and operations tools
Learn moreFaster turns, freer cash
Inventory turnover measures how many times you sell and replace stock in a year. Higher turns mean less cash frozen in inventory and lower storage and obsolescence risk — but turn too fast and you risk stockouts. The right level depends heavily on your industry.
How it’s calculated & sources
Turnover = cost of goods sold ÷ average inventory. Days sales of inventory = 365 ÷ turnover — the average days a unit sits before selling.
Benchmark: retail averages roughly 8 turns/year; grocery and fast-moving goods far higher, specialty and big-ticket goods lower (industry data).
Results update as you type and are general estimates, not personalized financial, tax, medical or legal advice. Verify with a professional.
Worked example
$600,000 COGS on $100,000 average inventory is 6 turns a year — about 61 days of inventory on hand.
Frequently asked questions
What is a good turnover ratio?
It’s industry-specific — compare to peers, not an absolute. Rising turnover usually signals improving efficiency; falling turnover can mean overstock or slowing sales.
How do I find average inventory?
Average the beginning and ending inventory for the period, or the monthly averages for a smoother figure.