Inventory Turnover Calculator
How many times a year stock is sold and replaced, and how many days of stock that represents.
Results
Inventory turnover
5.000
Days of inventory
73.0
d
Weeks
10.40
What this tool does
Turnover of five means the warehouse empties and refills five times a year, which is about 73 days of stock sitting on the shelves. The days figure is usually the more useful one, because it translates directly into cash tied up and into shelf life risk.
Formula
turnover = sales cost ÷ average stock · days = 365 ÷ turnover
Variables
| Symbol | Meaning | Unit |
|---|---|---|
c | Cost of goods sold | — |
i | Average inventory value | — |
T | Inventory turnover | — |
D | Days of inventory | d |
W | Weeks | — |
Worked example
- Cost of goods sold480,000
- Average inventory value96,000
- Inventory turnover5.000
- Days of inventory73.0 d
- Weeks10.40
Limitations
- This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
- The result is an estimate based only on the values you type. Real situations often include factors this calculator does not know about.
- The tool works with whatever currency you use for the inputs; it does not convert between currencies.