Free Tool by VNDLY
Inventory Turnover Calculator & Industry Benchmarks
Calculate your inventory turnover ratio and days of inventory on hand, then compare against benchmarks for 20+ industries. Free, instant, no signup.
How to use this calculator
1. Enter beginning inventory value
The dollar value of inventory at the start of the period.
2. Enter ending inventory value
The dollar value of inventory at the end of the period.
3. Enter cost of goods sold
Your COGS for the same period (usually one year).
4. Select your industry (optional)
Get an instant verdict comparing your ratio to the industry benchmark range.
Understanding inventory turnover
Inventory turnover tells you how efficiently you're converting stock into sales. A higher ratio generally means leaner operations — but it can also signal understocking if you're running out too often.
What is inventory turnover?
How many times you sell and replace stock in a period.
What's a good ratio?
Varies by industry. Grocery: 14–20×. Apparel: 4–6×. Electronics: 6–12×. See the benchmark table for your sector.
What causes low turnover?
Overstocking, slow-moving SKUs, poor demand forecasting, excess safety stock.
What causes high turnover?
Lean stocking, accurate forecasting, or potentially understocking (risking stockouts).
See turnover for every SKU, not just your whole business
Your overall turnover ratio hides the real story — some SKUs turn 20× a year while others haven't moved in months. VNDLY shows inventory turnover per SKU, flags your dead stock, and helps you buy the right amount of every product, every time. Starting at $49/mo.
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Frequently asked questions
What is inventory turnover?
The number of times you sell and replenish your inventory in a period. High = fast-moving; low = slow-moving stock.
What is a good inventory turnover ratio?
Depends heavily on industry. Grocery: 14–20×. Fashion: 4–6×. Electronics: 6–12×. As a general rule, higher is better — but too high can mean you're risking stockouts. See the industry benchmark table above for your sector.
What's the formula for inventory turnover?
Inventory turnover = COGS ÷ average inventory. Average inventory = (beginning inventory + ending inventory) ÷ 2.
What does days inventory outstanding mean?
Days inventory outstanding (DIO), also called 'days of cover', tells you how many days your current inventory would last at the current sales rate. Lower DIO = leaner, faster. Higher = more cushion but more cash tied up.
How do I improve my inventory turnover?
Identify slow-moving SKUs and reduce reorder quantities. Improve demand forecasting. Run promotions on excess stock. VNDLY shows turnover by SKU so you can spot the dead stock fast.
Where do these industry benchmarks come from?
The benchmark ranges are seed estimates compiled from public financial-statement aggregates (CSImarket/NYU Stern-style sector data) and industry rules of thumb. They are directionally correct but should be verified against primary sources (e.g. NYU Stern sector data, CSImarket, annual reports) before external publication. The table is free to cite with attribution (CC BY 4.0).