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Inventory Turnover Calculator

Turn bookkeeping totals into two fast inventory-efficiency reads: how many times average inventory turned over during the period, and how many days of stock that implies on hand.

Currency
$
$
days
Examples

120000 of COGS, 30000 of average inventory, and 90 days gives 4.00 turns for the quarter and about 22.5 days on hand.

Inventory turnover ratio
4 turns/period
Days inventory on hand
22.5 days
Average daily COGS burn
$1,333.33

Use the same period length and currency across runs when comparing quarters, locations, or product lines.

Descriptive planning aid only. It does not set a target turnover rate or replace accounting judgment about valuation, cutoffs, or product mix.

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Examples

How It Works

Formula

T=COGSIˉT = \frac{\text{COGS}}{\bar{I}}

Don hand=PTD_{\text{on hand}} = \frac{P}{T}

Don hand=IˉCOGS×PD_{\text{on hand}} = \frac{\bar{I}}{\text{COGS}} \times P

Iˉ=Ibegin+Iend2\bar{I} = \frac{I_{\text{begin}} + I_{\text{end}}}{2}

Variables

COGS\text{COGS}

Cost of goods sold for the selected period

Iˉ\bar{I}

Average inventory value used in the turnover calculation

PP

Length of the selected period(days)

TT

Inventory turnover ratio(turns/period)

Don handD_{\text{on hand}}

Days of inventory implied by the turnover ratio(days)

COGS/P\text{COGS} / P

Average daily COGS burn over the selected period(currency/day)

Inventory turnover equals cost of goods sold divided by average inventory for the same period. Days on hand flips that relationship into time by dividing the selected period length by turnover. If you only know beginning and ending inventory, the calculator first averages those two balances and then runs the same turnover math.

Frequently Asked Questions

01What does inventory turnover tell me?
It describes how many times your average inventory value was converted into cost of goods sold during the selected period. Higher turnover means the same inventory value cycled through sales activity more often; lower turnover means stock sat longer between sell-through cycles.
02Why do COGS, inventory, and days need to use the same period?
The formula is only meaningful when all three inputs describe the same span of time. Mixing a monthly COGS total with a quarterly inventory average or a 365-day period length turns the ratio into a timing mismatch instead of an operational comparison.
03Is there a universally good turnover rate?
No. A useful turnover rate depends on what you sell, how often you replenish, and how much buffer you choose to carry. Treat this calculator as a descriptive comparison tool for your own quarters, locations, or product lines rather than a universal benchmark.

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