Inventory Turnover Calculator

Inventory Turnover = COGS divided by Average Inventory (times per year). The calculator also derives Days Inventory Outstanding as 365 divided by turnover, showing how many days of inventory you typically hold.

It varies a lot by industry - this calculator notes retail businesses often turn inventory around 10x a year, while manufacturers are typically in the 4-6x range. Compare your result to your own industry, not a universal benchmark.

Generally faster turnover means less cash tied up in stock and lower obsolescence risk, but extremely high turnover can also mean you're understocked and risking stockouts - context matters more than the raw number.

Typically the average of your beginning and ending inventory for the period (or a more granular average if you have monthly figures) - enter whatever average figure you have; the calculator doesn't compute the average itself from separate beginning/ending values.