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Inventory Turnover Calculator

Compare cost of goods sold with average inventory value over the same period.

Use a consistent reporting periodCheck the calculation below

Your business figures

Runs on your device

METRIC SNAPSHOT

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 cost of goods sold, average inventory at cost.
  2. Select Calculate to view the result.
  3. Check the method and assumptions below before using the result.

The method, explained

Inventory turnover = cost of goods sold ÷ average inventory at cost. Days inventory = 365 ÷ turnover for annual figures.

A WORKED EXAMPLE

Annual cost of goods sold of 120,000 and average inventory of 30,000 give 4 turns and 91.25 inventory days.

What to keep in mind

Both inputs should use cost valuation, not retail selling prices. The days figure assumes annual turnover and a 365-day year.

Common questions

How do I estimate average inventory?

A simple estimate averages beginning and ending balances. Seasonal businesses may need more frequent measurements.

Is higher turnover always better?

Not necessarily. It can coexist with stockouts or inadequate inventory; context matters.

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