Calculate average inventory
Beginning inventory
Ending inventory
2
Average inventory
Average inventory = (Beginning inventory + Ending inventory) ÷ 2
Average inventory estimates the stock value held during the period.
Inventory calculator
Inventory Turnover Calculator
Use this free inventory turnover calculator to estimate how many times your inventory is sold and replaced during a period. Enter cost of goods sold, beginning inventory, ending inventory, and period length to calculate turnover and days inventory outstanding. It is useful for stock planning, purchasing, and inventory performance analysis.
Average inventory
50,000
Inventory turnover ratio
4×
Days inventory outstanding
91.25
Result overview
COGS
200,000
Average inventory
50,000
Inventory turnover
4×
Period days
365
Inventory turnover
4×
Days inventory outstanding
91.25
How to calculate inventory turnover
Inventory turnover shows how efficiently a business sells and replaces stock. A higher turnover can indicate faster sales, while a lower turnover may suggest slow-moving inventory or excess stock.
Calculate inventory turnover
COGS
Average inventory
Inventory turnover
Inventory turnover = COGS ÷ Average inventory
Inventory turnover shows how many times inventory is sold and replaced during the period.
Calculate days inventory outstanding
Period days
Inventory turnover
Days inventory outstanding
Days inventory outstanding = Period days ÷ Inventory turnover
Days inventory outstanding estimates how many days inventory stays on hand before being sold.
How to use this calculator
- Enter your cost of goods sold
- Enter beginning inventory
- Enter ending inventory
- Enter the period length in days
- Review average inventory, turnover ratio, and days inventory outstanding
Examples
Example 1
- COGS
- 200,000
- Beginning inventory
- 60,000
- Ending inventory
- 40,000
- Average inventory
- 50,000
- Inventory turnover
- 4
- Period days
- 365
- Days inventory outstanding
- 91.25 days
Example 2
- COGS
- 150,000
- Beginning inventory
- 80,000
- Ending inventory
- 70,000
- Average inventory
- 75,000
- Inventory turnover
- 2
- Period days
- 90
- Days inventory outstanding
- 45 days
Tips
Use the same period for COGS and inventory values.
High turnover can mean strong sales or too little stock.
Low turnover can mean slow-moving inventory or overstocking.
Compare turnover by product category, not only overall.
Review turnover together with reorder points and stock availability.
Want better visibility over inventory performance?
Gombo helps you manage stock, purchases, invoices, reporting, and business operations from one connected platform.