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Inventory Turnover Calculator

Calculate period inventory turnover and days inventory outstanding using COGS and inventory at cost.

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Calculate inventory turns and days inventory outstanding from period cost of goods sold and beginning and ending inventory values.

Enter your business figures

Use COGS, not sales revenue; enter all monetary amounts in one currency.

Inventory at cost at the start of the same period.

Inventory at cost at the end of the same period.

Use 365 for a standard year or the actual days in your chosen period.

Each successful calculation uses one of this tool’s 8 daily free uses. Editing, resetting and invalid inputs use none. Your figures remain in your browser.

Worked example

Example output from the starting values. Enter your figures and press Calculate for your result.

Average inventory
50,000 currency units
Inventory turnover
2 turns / period
Days inventory outstanding
182.5 days

Formula

Average inventory = (beginning inventory + ending inventory) ÷ 2. Turnover = period COGS ÷ average inventory. Days inventory outstanding = period days ÷ turnover.

How to use this calculation

100,000 COGS ÷ ((60,000 + 40,000) ÷ 2) = 2.00 turns. For a 365-day period, days inventory outstanding = 182.50 days.

  • Keep COGS and inventory at the same cost valuation basis and currency. Beginning and ending balances must bound the COGS period.
  • A two-point average can hide seasonal inventory swings; use a more granular average for detailed analysis. A zero average inventory makes turnover undefined.
  • Zero COGS produces zero turns and undefined days inventory outstanding. A high ratio is not automatically better: it can also signal insufficient stock. Compare matching periods within your industry.

Formula reference: Wall Street Prep: Inventory Turnover Ratio. General planning information, not a guarantee of business results.

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