Inventory Turnover Calculator
Calculate inventory turnover and days inventory outstanding (DIO) from cost of goods sold and average inventory.
Your inputs
Results
Inventory turnover
6 ×
- Days inventory outstanding
- 60.83 days
- Average inventory
- $100,000.00
✓Exact calculation — rounded only for display
What this calculator does
Inventory turnover shows how many times stock is sold and replaced in a period; DIO converts it into the average number of days items sit in stock.
Formula and method
Worked example
Calculated by this tool with its default inputs:
Inputs
- Cost of goods sold for the period: 600000 (any currency)
- Inventory at start: 90000 (any currency)
- Inventory at end: 110000 (any currency)
- Days in period: 365
Results
- Inventory turnover: 6 ×
- Days inventory outstanding: 60.83 days
- Average inventory: 100,000
How to read the results
Higher turnover usually means leaner inventory, but too high can cause stock-outs.
Assumptions and limitations
- Use inventory at cost, consistent with COGS.
Financial results are estimates based on the inputs and assumptions shown. They are not financial advice; confirm figures with your lender, provider or a qualified adviser before making decisions.
Questions
Why use COGS instead of sales?
Inventory is carried at cost, so COGS keeps numerator and denominator on the same basis.
Methodology and verification
- Result type
- Exact mathematical calculation (rounded only for display)
- Formula version
- 1.0
- Automated verification
- 2 reference and validation test cases, checked against independently computed values. The site cannot be built if any of them fail.
- Editorial review
- Awaiting human editorial review. The explanation was drafted with AI assistance; the formula and examples are verified by the automated tests above.
Privacy
Everything you enter is calculated in this browser and is not sent to Numerith or anyone else. Inputs are added to a share link only if you choose to include them. Privacy policy