Inventory Turnover Calculator
See how many times inventory is sold or used in a period, and how many days stock is held on average.
Inventory Turnover Calculator
Total COGS for the period selected below.
At cost, same valuation method as ending.
Inventory Turnover
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Days Inventory Outstanding
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Average Inventory
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COGS for Period
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Days held vs. period length
Same figures, different inventory bases
| Inventory basis | Inventory (₹) | Turnover | Days outstanding |
|---|
Assumptions & method
- Inventory turnover = COGS ÷ average inventory, where average inventory = (beginning + ending) ÷ 2.
- Days inventory outstanding (DIO) = period days ÷ turnover, which equals average inventory ÷ COGS × period days.
- COGS and inventory must use the same valuation basis (for example cost under FIFO, or weighted average) and be measured in the same currency and period.
- Period length is selectable: 365 or 360 days for a year, or a shorter period. Turnover is for the period entered and is not annualised automatically.
- A two-point average can hide seasonal swings. If stock levels vary widely, use an average of more observations as the inventory figure.
- Results describe the past period only. They do not say whether the level of inventory is right for your business.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
What is inventory turnover?
Inventory turnover measures how many times a business sells through, or uses, its stock during a period. Dividing cost of goods sold by average inventory shows how much stock is needed to support a given level of activity. Days inventory outstanding translates the same idea into time: the average number of days stock sits before it is sold or used. A faster turn means less money tied up in stock, but also less buffer against shortages; a slower turn can reflect planned buffer stock, long lead times or items that are not selling. The comparison table shows how the result changes when you use ending or beginning inventory instead of the average.