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Inventory Turnover Calculator

Estimate annual inventory turnover and average days inventory is held from cost-of-goods and average inventory values.

Estimate annual inventory turnover and average days inventory is held from cost-of-goods and average inventory values.

Inventory Turnover Calculator

Enter your assumptions
Turns per year—
Approx. days inventory—
Average monthly COGS—

Formula

Inventory turnover = annual cost of goods sold ÷ average inventory value

How to use the result

Make sure numerator and denominator use compatible valuation methods and periods before comparing turnover between products or businesses.

What the calculator does not know

These tools are general inventory-planning aids, not accounting, tax, regulated-product, hazardous-material, food, pharmaceutical or safety-stock policy advice. Requirements for controlled, perishable or safety-critical inventory can be materially different; use applicable regulations, contracts, manufacturer requirements and qualified professional guidance.

Improve the estimate

Keep the inputs used for the decision and compare the estimate with actual results. A simple calculator is most useful when it makes the assumptions visible enough to learn from the difference.