What is inventory turnover?
Inventory turnover measures how many times a business sells and replaces its stock of inventory over a given period. A higher turnover generally means inventory is moving efficiently; a lower turnover can signal overstocking or slow sales.
How this calculator works
Enter your cost of goods sold for the period and your average inventory value (often (beginning + ending inventory) / 2). The calculator divides COGS by average inventory to get the turnover ratio, then divides 365 by that ratio to estimate the average number of days inventory sits before being sold.
Ideal turnover rates vary significantly by industry — perishable goods businesses expect much higher turnover than, say, heavy equipment sellers. This tool is for general inventory planning purposes.
Last reviewed August 2026