Inventory Turnover Calculator
Find how many times your stock sells through per period.
How fast your stock moves
Inventory turnover measures how many times you sell through your stock in a period. It reveals how efficiently capital is working: slow turnover ties up cash in unsold goods.
Cost of goods sold of 500,000 against average inventory of 100,000 is a turnover of 5 — the stock sells through five times a year, roughly every 73 days. Higher is usually leaner, up to the point where stockouts appear.
Practical and private
The calculation runs in your browser, so these figures never leave your device.
Frequently Asked Questions
What is inventory turnover?
How many times you sell and replace your stock over a period. Cost of goods sold divided by average inventory value.
What are days inventory outstanding?
The average number of days stock sits before selling — 365 divided by the turnover ratio.
Is higher turnover better?
Usually, since it means less cash tied up in stock, but too high can signal lost sales from stockouts.
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