Inventory Turnover Calculator
Relate cost of goods sold to average inventory and days held during a reporting period.
Your result
FINANCIALEnter your values and select calculate.
On this page How it works & practical examples
How to use the Inventory Turnover Calculator
Use inventory valued on the same cost basis as cost of goods sold, not retail selling value. Average inventory should reflect the period reasonably; a single end-of-period value can be misleading when stock changes substantially.
The calculation
Worked example
$240,000 cost of goods sold and $60,000 average inventory over 365 days give 4× turnover and 91.25 inventory days.
Assumptions and limits
The calculator does not choose an accounting method or infer a healthy industry benchmark. Zero COGS gives zero turnover and undefined inventory days, rather than an infinite number.
Common questions
Can I use a quarterly period?
Yes. Enter that period’s COGS, average inventory and day count together.
Is revenue interchangeable with COGS?
No. Revenue includes markup, which would change the interpretation of turnover.