About the Inventory Turnover Calculator
Inventory turnover shows how many times you sell and replace your stock in a period — a gauge of how efficiently inventory becomes sales. It also converts to days of inventory on hand.
How it’s calculated
Turnover = cost of goods sold ÷ average inventory. Days sales of inventory = 365 ÷ turnover.
Example calculation
$500,000 COGS against $80,000 average inventory is a 6.25× turnover — about 58 days of inventory.
Frequently asked questions
Is a higher turnover always better?
Usually it means efficient selling and less cash tied up, but too high can signal understocking and lost sales. Compare against norms for your industry.
Which inventory figure should I use?
Average inventory over the period — typically (beginning + ending) ÷ 2 — smooths out seasonal swings better than a single snapshot.
This tool provides estimates for general informational and educational purposes only. Results are based on the values you enter and standard formulas, and may not reflect your specific circumstances.