Inventory Turnover Calculator: Turnover Ratio and Days of Stock
Free tool · Updated October 2, 2026 · By CouponTalk · Reviewed by CouponTalk Expert Reviews on
Your result
Enter your measurements to see your result.
Quick answer
Inventory turnover = cost of goods sold ÷ average stock, where average stock is opening plus closing stock divided by 2. Days of inventory = days in the period ÷ turnover. With ₹9 lakh of goods sold in a year and average stock of ₹1.75 lakh, turnover is 5.1 times and stock sits for about 71 days before it sells.
How to use this calculator
- Take stock value at the start and end of the period, at purchase cost, not MRP.
- Enter the purchase cost of everything you sold in that period.
- Pick the period length to get days of inventory.
Formula
Average stock = (opening stock + closing stock) ÷ 2
Inventory turnover = cost of goods sold ÷ average stock
Days of inventory = days in period ÷ inventory turnover
Use stock values at purchase cost from your books or inventory software.
Frequently asked questions
Is higher inventory turnover better?
Usually. Faster turnover means less cash stuck in stock. Too high can mean frequent stock-outs, so check your out-of-stock days too.
Why use cost, not selling price?
Stock is valued at cost, so cost of goods sold keeps both sides of the ratio comparable.
How can I cut days of inventory?
Reorder smaller quantities more often, clear slow sizes and colours with deals, and stop restocking items that sell fewer than one unit a week.
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