Inventory Turnover Calculator
Calculate inventory turnover ratio and days to sell inventory.
Assumptions used in this calculation
- Annual period, 365-day year: Assumes COGS is an annual figure and uses 365 days per year when converting the turnover ratio into average days to sell inventory.
About this calculator
Cash sitting in unsold inventory is cash that isn't earning anything, and a business can look profitable on paper while quietly tying up too much money in stock that moves slowly — a problem that's hard to spot without a clear metric for how fast inventory is actually turning over. This calculator takes annual cost of goods sold (COGS) and average inventory value, and divides one by the other to find the inventory turnover ratio: how many times stock is fully sold and replaced over the year. It then converts that ratio into average days to sell inventory (365 ÷ turnover ratio), a more intuitive figure for spotting slow-moving stock. Rather than eyeballing whether inventory levels feel high, this gives retailers, distributors and manufacturers a concrete number to track over time, compare against industry norms, and use to catch overstocking or understocking before it becomes a cash-flow problem.
Worked example
COGS ₹5,00,000, avg inventory ₹1,00,000
Result: Turnover = 5×, 73 days to sell
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