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Days Inventory Outstanding Calculator

Estimate inventory holding days from cost of goods sold.

Use a consistent reporting periodCheck the calculation below
Business dashboard
Business dashboard

Use figures from the same reporting period.

See the method

Enter your business figures

Runs on your device

Your key metric

Your result

Let’s calculate.

Use the Calculate button to see your result.

Review the method below for assumptions and conventions.

How to use this tool

  1. Enter average inventory, cost of goods sold, days in period.
  2. Select Calculate to view the result.
  3. Check the method and assumptions below before using the result.

Input reference and sample values

Use the units and choices shown for each field. Sample values are provided for practice, not as recommendations.

InputFormat and unitsSample
Average inventoryNumeric value. Unit: money. Must be greater than zero.30000
Cost of goods soldNumeric value. Unit: money. Must be greater than zero.180000
Days in periodNumeric value. Unit: days. Must be greater than zero.365

Result for these sample inputs

60.8333333 days

Select Try the example in the form to load these values and calculate them again. This replaces the current form inputs. Compare the result with the method and worked explanation below.

The method, explained

DIO = average inventory/cost of goods sold × days in period.

A WORKED EXAMPLE

Using average inventory = 30000 money, cost of goods sold = 180000 money, days in period = 365 days, the result is 60.8333333 days. Change these example inputs to match your task; use the method above to check each step.

What to keep in mind

Use consistent currencies, reporting periods and accounting definitions. This arithmetic estimate excludes items not entered in the form.

Methodology maintained by ClarityKit. How these tools are built and checked.