Calculators
Inventory Turnover Calculator
Calculate inventory turnover, days inventory outstanding and the cash released by improving turns.
- Runs in your browser
- Nothing uploaded
The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Inventory performance reviews
- Working capital planning
- Comparing suppliers or categories
- Lender reporting
About this tool
What the Inventory Turnover Calculator does
Inventory turnover measures how many times stock is sold and replaced in a year: cost of goods sold divided by average inventory. Days inventory outstanding converts that into how long stock sits. Faster turns release cash and reduce storage and obsolescence costs.
Formula
- Average inventory = (opening + closing) ÷ 2
- Turns = cost of goods sold ÷ average inventory
- Days of inventory = 365 ÷ turns
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Annual cost of goods sold | $1,800,000 |
| Opening inventory | $320,000 |
| Closing inventory | $280,000 |
| Target turns | 8 |
| Annual carrying cost | 20% |
| Result | Value |
|---|---|
| Inventory turns | 6.00 |
| Days of inventory | 60.8 |
| Average inventory | $300,000 |
| Cash released at target turns | $75,000 |
| Annual carrying cost saved | $15,000 |
How to read the result
Measure turns by product category; a good overall number can hide slow movers tying up cash.
Higher turns are good only if stock-outs stay low; balance turns against service level.
Related calculators
- Supplier Lead Time Cost Calculator: Calculate the inventory and carrying cost of a supplier’s lead time and compare a cheaper slower supplier with a faster one.
- Material Lead Time Calculator: Work back from the date materials are needed to the latest order date, adding supplier, shipping, inspection and buffer days.
- Sea vs Air Freight Calculator: Compare sea and air freight for a shipment on freight cost, inventory carrying cost during transit and the cost of lost sales time.
- EV Fleet vs Petrol Fleet TCO Calculator: Compare the total cost of ownership of electric and petrol fleet vehicles over their life: purchase, energy, maintenance, incentives and resale.
Browse every calculator in Logistics and Inventory Calculators, or talk to us about websites and portals for logistics companies.
More tools and services
- 1031 Exchange Calculator
- 401(k) Contribution Optimizer
- 529 College Savings Calculator
- A/B Test Significance Calculator
- Accessible Ramp Calculator
- Accounts Payable Aging Calculator
If you would rather someone did this properly for you, we offer Web Design Services and Website Development, SEO Services: Search Engine Optimization, AI Automation Agency.
Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
It depends on the industry: grocery turns very fast, furniture and machinery slowly.
Reduce slow-moving stock, order smaller quantities more often and improve forecasting.
Inventory is valued at cost, so it is compared with cost of goods sold rather than sales.
Free strategy session
Let’s build something worth finding.
Tell us where you want the business to be in twelve months. We will come back with a costed plan, a realistic timeline, and the numbers we expect to move — no obligation, no jargon.
- 30-minute call, no pitch deck
- Fixed-price proposal in 48 hours
- You own everything we build
Talk to a developer
Not a sales team
- Response time
- Within 1 business hour
- Where we work
- UK, USA & the Gulf
- Contracts
- No lock-in, monthly rolling
- Working since
- 2023