Free Tool by VNDLY
Inventory Turnover Calculator
Calculate your inventory turnover ratio and days of inventory on hand. See how fast your stock moves and how much cash is tied up on shelves.
Your inventory turnover ratio
4.0×
times per year you sell and replace stock
Average inventory
$25,000
(beginning + ending) / 2
Days of inventory
91 days
365 ÷ turnover
Good benchmark: Most SMBs aim for 4–12× depending on industry. Higher = faster-moving stock.
COGS for the period (usually one year).
Inventory value at the start of the period.
Inventory value at the end of the period.
The formulas
Average inventory = (beginning + ending) / 2
Inventory turnover = COGS ÷ average inventory
Days of cover = 365 ÷ inventory turnover
100% free · no signup · calculated in your browser.
Turnover tells you more at SKU level
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.
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. Read your results
Turnover ratio, average inventory and days of cover update instantly.
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: 15–30×. Apparel: 4–6×. Electronics: 6–12×. General: 4–12×.
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.
Related free tools
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: 15–30×. Fashion: 4–6×. Electronics: 6–12×. As a general rule, higher is better — but too high can mean you're risking stockouts.
What's the formula for inventory turnover?
Inventory turnover = COGS ÷ average inventory. Average inventory = (beginning inventory + ending inventory) ÷ 2.
What does days of inventory outstanding mean?
DOI (also called 'days of cover') tells you how many days your current inventory would last at the current sales rate. Lower DOI = 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.