The Inventory Turnover Calculator works out your inventory turnover (times/year), along with 1 related figure in an instant. Enter cost of goods sold (year) and average inventory and the result updates as you type — it is free, needs no sign-up, and runs entirely in your browser so your figures stay private.
Enter the cost of goods sold (year).
Enter the average inventory.
Read off your inventory turnover (times/year), together with days inventory outstanding — the calculator updates automatically, with no button to press.
Formula
The Inventory Turnover Calculator uses the formula:
Inventory turnover (times/year) = Cost of goods sold (year) ÷ Average inventory
Worked example
For example, with cost of goods sold (year) of ₹6,000,000 and average inventory of ₹1,000,000, the inventory turnover (times/year) is 6.00.
Inputs used
Cost of goods sold (year)
₹6,000,000
Average inventory
₹1,000,000
Results
Inventory turnover (times/year)
6.00
Days inventory outstanding
60.8
Results are estimates for educational use, not professional advice.
The average of a set of numbers — their sum divided by how many there are.
Frequently asked questions
It is how many times a business sells and replaces its stock in a year: cost of goods sold ÷ average inventory. 60,00,000 COGS over 10,00,000 average stock is a turnover of 6.
Usually yes — it means stock sells quickly and ties up less cash. But very high turnover can risk stockouts and lost sales.
It is 365 divided by the turnover, showing the average number of days stock is held before being sold. A turnover of 6 is about 61 days.
Often it is the average of opening and closing inventory for the period, which smooths out seasonal swings.
The Inventory Turnover Calculator uses the formula: Inventory turnover (times/year) = Cost of goods sold (year) ÷ Average inventory. For example, with cost of goods sold (year) of ₹6,000,000 and average inventory of ₹1,000,000, the inventory turnover (times/year) is 6.00.
Enter the cost of goods sold (year). Enter the average inventory. Read off your inventory turnover (times/year), together with days inventory outstanding — the calculator updates automatically, with no button to press.
Reference table of inventory turnover (times/year) for Inventory Turnover across a range of cost of goods sold (year) values — exact, engine-computed figures you can read off at a glance.