Inventory Turnover Calculator: How Fast Does Your Stock Sell?
Enter the cost of goods sold for the period and the value of your opening and closing inventory. The calculator shows how many times you sold through your stock and how many days it took.
Estimates only. Check important results before you rely on them.
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From related categoriesHow to use this calculator
- Enter the cost of goods sold for the period.
- Enter the inventory value at the start and at the end.
- Enter the number of days in the period.
- Read the turnover and the days to sell.
The formula
Worked example
With ₹12,00,000 of cost of goods sold and average inventory of ₹2,50,000, turnover is 4.8 times a year. That is 365 ÷ 4.8 = about 76 days to sell the stock.
Understanding your result
A higher turnover means stock moves quickly and less cash is tied up. A very low number may point to overstocking or slow products. Compare with others in your own category, as the right level differs between products.
When to use it
- Spot slow-moving stock.
- Plan purchases and cash flow.
- Compare product lines or periods.
Assumptions and limits
Use cost of goods sold, not sales, and use values at cost. Seasonal businesses should compare like periods.
Frequently asked questions
What is inventory turnover?
How many times you sell and replace your stock in a period.
How do I calculate days to sell inventory?
Divide the number of days in the period by the turnover ratio.
Is a high turnover good?
Usually yes, but too high can mean you run out of stock and lose sales.
Should I use sales or cost of goods sold?
Use cost of goods sold so that both sides are at cost.
What is a good turnover?
It depends on the business. Groceries turn much faster than furniture.