Inventory Turnover Calculator
Calculate inventory turnover ratio, days on hand, months of inventory, and a simple reorder-point target from COGS, inventory balances, and lead time.
Last updated: 2026-03-17
Inventory turnover calculator
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Turn annual COGS and inventory balances into a cleaner read on working-capital efficiency and reorder timing.
Inventory Turnover
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Enter annual COGS and inventory balances to estimate turns, days on hand, and reorder point.
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Example calculations
Tap an example to prefill the calculator with sample values.
Healthy retail rotation
$960k COGS, inventory tapering down through the year
A baseline case where inventory turns well and still leaves room for a lead-time buffer.
Result: A solid turnover ratio with inventory days staying in a manageable band
Slow-moving stock
Heavy average inventory against lighter annual COGS
Useful when cash feels trapped on shelves and you need to quantify how slow the system really is.
Result: Days on hand swell quickly once turnover slips, even before stockouts are an issue
Lean reorder cadence
Fast-moving catalog with tighter inventory discipline
A cleaner case for businesses optimizing working capital without going so lean that lead time becomes risky.
Result: Higher turnover lowers days on hand and compresses working-capital drag
How the inventory model works
The calculator averages beginning and ending inventory, then divides annual COGS by that average to estimate how many full turns inventory makes in a year.
It also converts annual consumption into daily usage so lead time and safety stock can produce a simple reorder-point target instead of a ratio alone.
Inventory turnover FAQs
How turnover, days on hand, and reorder point relate to working capital.
What does inventory turnover actually tell me?
It tells you how many times average inventory is sold through over a year. Higher turnover generally means less cash trapped in stock, though too much can create stockout risk if replenishment is weak.
Why include a reorder point?
Because turnover alone is descriptive. Reorder point turns the analysis into an operating action by converting daily usage, supplier lead time, and safety stock into a target inventory threshold.
Is average inventory enough?
It is a good planning shortcut. Highly seasonal businesses may still need month-by-month inventory analysis to capture peak buying and replenishment cycles accurately.
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