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Inventory turnover calculator

Compute inventory turnover and days of inventory from COGS and average stock.

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Receivables turnover calculatorCompute how many times a year a business collects its average receivables.Employee turnover rate calculatorCompute your staff turnover rate from departures and average headcount.Fixed asset turnover calculatorHow efficiently a business uses its fixed assets to generate sales: net sales ÷ average net fixed assets. A higher ratio means each dollar of plant and equipment produces more revenue. Enter the average directly, or beginning and ending values.Asset turnover ratio calculatorCompute how efficiently a company uses its assets to generate revenue.Inventory period calculatorDays Inventory Outstanding — how long stock sits before it sells: average inventory ÷ cost of goods sold × days, or simply days ÷ inventory turnover if you already know the ratio. Lower is faster turnover and better cash flow.FIFO and LIFO inventory calculatorValue inventory and cost of goods sold three ways at once — FIFO, LIFO and weighted average. Add each purchase batch with its quantity and unit cost, enter the units sold, and it computes the COGS, ending inventory value and units on hand under all three methods so you can compare their profit impact side by side.Inventory shrinkage calculatorMeasure inventory shrinkage as a percentage and value from book vs counted stock.Employee cost calculatorEstimate the total cost of an employee from gross salary and employer charges.

Enter Cost of goods sold, Average inventory, Target days of inventory and the Inventory turnover calculator works out Turnover (×/year), Days of inventory, Inventory at the target, Cash freed by reaching it straight away. For instance, with Cost of goods sold = $250,000.00, Average inventory = $50,000.00 and Target days of inventory = 45 it returns Turnover (×/year) = 5, Days of inventory = 73 and Inventory at the target = $30,821.92.

How to use it

  1. Enter your values: Cost of goods sold, Average inventory, Target days of inventory.
  2. Read the result instantly: Turnover (×/year), Days of inventory, Inventory at the target, Cash freed by reaching it.

Frequently asked questions

What does the Inventory turnover calculator actually compute?

It takes Cost of goods sold, Average inventory and Target days of inventory and derives Turnover (×/year), Days of inventory, Inventory at the target and Cash freed by reaching it from them. The calculation is live as you type, so the result updates on every change.

What information do I need to provide?

3 values: Cost of goods sold ($), Average inventory ($) and Target days of inventory. Nothing else is required — no account, no file upload.

Can you show a worked example?

With Cost of goods sold = $250,000.00, Average inventory = $50,000.00 and Target days of inventory = 45, the calculator returns Turnover (×/year) = 5, Days of inventory = 73 and Inventory at the target = $30,821.92. Those figures come from running this exact tool, so you can reproduce them by entering the same values.

What happens if I enter larger values?

It moves a lot. Using Cost of goods sold = $500,000.00, Average inventory = $100,000.00 and Target days of inventory = 90 instead, Inventory at the target goes from $30,821.92 to $123,287.67 — which is why it is worth testing a few scenarios rather than trusting a single figure.

What does it give for smaller values?

Scaled down to Cost of goods sold = $125,000.00, Average inventory = $25,000.00 and Target days of inventory = 23, Inventory at the target comes out at $7,876.71. The relationship is worth checking at both ends before you rely on a single result.

When would I actually use this?

Budgeting a hire properly, converting between working-time bases, and checking what leave, overtime or a departure actually costs.

What is the most common mistake?

Budgeting the salary as the cost of the hire. Employer contributions, paid leave, equipment and the recruitment itself typically add 20% to 60% on top, depending on the country.

What is the difference between the Inventory turnover calculator and the Receivables turnover calculator?

This one returns Turnover (×/year) and Days of inventory; the Receivables turnover calculator returns Receivables turnover and Collection period (days). That is the whole difference — open the one whose figure you need.

Is there a tool for the next step?

Employee turnover rate calculator is the closest one after this: Compute your staff turnover rate from departures and average headcount.

What else is worth having open alongside it?

Fixed asset turnover calculator and Asset turnover ratio calculator — they come up in the same task often enough to be worth a second tab.

Further reading

All guides →
ExplainerWhat Is Inventory Turnover? (And What's a Healthy Ratio)Inventory turnover shows how many times you sell through your stock in a year. Learn the formula — COGS divided by average inventory — and what a healthy ratio looks like.ExplainerAsset Turnover: Diagnosing Capital That Is AsleepNet sales divided by net fixed assets is one of the easiest ratios to compute and one of the least comparable. The same retailer scored 10× before the lease standard and 1.39× after it — same shops, same sales, same year.ExplainerCost of Goods Sold Is What Left the Shelf, Not What You BoughtOpening stock 40,000, purchases 120,000, closing stock 35,000 — the cost of goods sold is 125,000, and it is larger than the purchases because the shelf gave up 5,000 of what was already there.ExplainerThe Count Says 48,200 and the Books Say 50,000A gap of 1,800 is a shrinkage rate of 3.6 %. The percentage is the number that travels; the absolute figure is the one that pays for the fix.ComparisonFIFO vs LIFO: What Actually Changes, and What Does NotFIFO and LIFO are assumptions about which cost you attach to a sale, not about which box leaves the warehouse. Worked through identical purchases and sales, they move cost of sales, inventory, profit and tax — but operating cash before tax is identical to the cent.ExplainerThe Cash Conversion Cycle: the Number That Explains Why You Are Out of CashCCC = DIO + DSO − DPO. It is the number of days your cash is out of your hands, and it is the reason a profitable, growing business runs out of money. Worked end to end, with the negative-cycle case that makes suppliers your cheapest lender.