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Finance

Inventory Turnover Calculator

See how quickly you sell through inventory.

Inputs

$
$
$

Result

Average inventory
$50,000
Turnover ratio
10.00x
Days of inventory
37 days

About this tool

Turnover = COGS รท average inventory. This tool computes turnover ratio and days-of-inventory-on-hand so you can benchmark against your industry.

What it does

  • โ€ขTurnover ratio
  • โ€ขDays of inventory
  • โ€ขAverage inventory calc
  • โ€ขIndustry benchmarks

Use cases

  • โ˜…Ecommerce ops
  • โ˜…Retail buying
  • โ˜…CFO reviews

FAQ

What's a good turnover?

6+ is strong for most retail; 3โ€“6 is typical; below 3 suggests overstocking.

How do I calculate average inventory?

(Beginning + ending) รท 2 โ€” the tool does this automatically.