Business Toolbox ProEleven calculators for running a small business

Stock Turnover Calculator

See how many times a year you sell through your inventory.

About this calculator

Measure how many times a year you sell through your inventory and how many days stock stays on the shelf.

Formula

Turnover = Cost of goods sold ÷ average inventory. Days in inventory = 365 ÷ turnover.

Example

With 240,000 of cost of goods sold and average inventory of 45,000, turnover is 5.3 times a year, about 68 days per cycle.

Common questions

Is higher turnover better?

Generally yes, because cash is tied up for less time, but a very high figure can mean frequent stock-outs.

Which inventory number do I use?

Use the average of opening and closing inventory for the period, as this calculator does.

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