Calculate inventory turnover ratio and days in inventory — enter cost of goods sold (COGS) and average inventory value to measure how efficiently stock moves. Results update live.
Frequently Asked Questions
What is inventory turnover?
Inventory turnover = COGS ÷ Average inventory. It shows how many times you sell and replace stock in a year. Higher turnover usually means leaner inventory management.
How are days in inventory calculated?
Days in inventory = 365 ÷ Turnover ratio. A ratio of 5× means inventory sits for about 73 days on average before being sold.
What is a good inventory turnover ratio?
It varies by industry. Grocery stores often turn 10–20× per year; furniture retailers may be 4–6×. Compare against sector benchmarks.
What should I use for average inventory?
Use (Beginning inventory + Ending inventory) ÷ 2 for the period matching your COGS figure, typically annual.
Is this tool free and does it work on mobile?
Yes on both counts. The Inventory Turnover Calculator on draft21 is completely free with no sign-up required and works on all devices.