Business calculator
Inventory Turnover Calculator
Estimate inventory turnover and days in inventory using cost of goods sold, beginning inventory, ending inventory and your reporting period.
How to use inventory turnover calculator
- Enter values from a consistent reporting period, using one currency.
- Select Calculate and review the labeled result.
- Copy, print or download the results as CSV.
Formula and assumptions
Average inventory = (beginning inventory + ending inventory) / 2. Turnover = cost of goods sold / average inventory. Days estimate = period days / turnover.
Worked example
Cost of goods sold of 120,000 and inventory balances of 10,000 and 14,000 give average inventory of 12,000, turnover of 10 times and 36.5 days in a 365-day period.
Limitations and troubleshooting
Inventory must be valued at cost, not selling price. Two balance snapshots can misrepresent seasonal inventory. This days measure uses average inventory; methods using ending inventory will differ.
Empty, negative and nonfinite inputs are rejected. Monetary outputs retain your input currency; no exchange rates are applied. Results are estimates, not accounting or investment advice. Inputs are processed locally and are not sent to analytics.
Methodology reference: OpenStax inventory efficiency ratios.
Frequently asked question
Should I enter sales revenue or cost of goods sold?
Enter cost of goods sold for the same period. Using sales revenue would mix retail value with inventory measured at cost.