Inventory Turnover Calculator
How many times stock turns over in a year and the days of inventory you hold, from cost of goods sold.
Inventory turnover
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Days of inventory—
Average inventory—
How to use the Inventory Turnover calculator
- Enter cost of goods sold in the year, opening inventory and closing inventory.
- Read the inventory turnover at the top of the result, with days of inventory, average inventory underneath. It updates as you type.
- Change one input at a time to see what moves the answer most, then save the result with Copy link or Download PDF.
About this tool
Higher turnover means less cash locked in stock. Compare with businesses in your own trade; grocery turns far faster than jewellery.
Formula: Turnover = COGS ÷ average inventory; days = 365 ÷ turnover
Worked example
With cost of goods sold in the year of ₹90,00,000, opening inventory of ₹12,00,000 and closing inventory of ₹15,00,000:
| Inventory turnover | 6.7 × a year |
| Days of inventory | 55 days |
| Average inventory | ₹13,50,000 |
Built and reviewed by Savitar Finance (savitarfinance@gmail.com). Rules and rates last checked October 2026. How we calculate · Report a problem
Questions people ask
Why use cost of goods sold rather than sales?
Inventory is valued at cost, so COGS gives a like-for-like ratio.
Is high inventory turnover always good?
Mostly, but too lean a stock can mean lost sales from stock-outs.