Free tool
Inventory turnover calculator
Overview
Enter your cost of goods sold and your inventory at the start and end of the period. See how often you turn inventory and how long it sits.
Gold tier in Intuit's ProAdvisor program. See my Intuit listing
Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. See Tallyfinch
Your numbers
Excel workbook · $34
Inventory Tracker and Reorder Workbook
Log what comes in and goes out and see what you have, what it is worth, what to reorder and what has not sold.
See what is inside ($34)14-day full refundHow it works
How it works
Average inventory is the start and end values added together and divided by two. Turnover is cost of goods sold divided by average inventory. Days on hand is the days in the period divided by turnover.
Want a second pair of eyes on your books? A free bookkeeping health check.
FAQ
About this calculator
What is inventory turnover?
It shows how many times you sell and replace your inventory in a period. Divide cost of goods sold by your average inventory.
How do I find average inventory?
Add the inventory value at the start and the end of the period and divide by two. For seasonal businesses, averaging more points gives a better picture.
Is a higher number always better?
Not always. Slow turnover ties up cash, but a very high number can mean you run out of stock and miss sales. Compare against similar businesses and your own history.
What are days of inventory on hand?
The days in the period divided by the turnover. It estimates how long a typical item sits before it sells.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Pricing for profit? Use the profit margin and markup calculator and read gross margin vs markup. Guide: inventory turnover explained. More free tools: Budget variance calculator, Small business tax deadlines, Receipt Expense Report, or see all free tools.
Free
Month-End Close Checklist (PDF)
The five-day close, one page to print. Enter your email and we send a link to confirm it is yours, then the download. We may email you about new toolkits, and every email has an unsubscribe link.
General information, not tax or legal advice. How we write and check our tools.
Excel workbook
Inventory Tracker and Reorder Workbook
Log what comes in and goes out and see what you have, what it is worth, what to reorder and what has not sold.
Also in the Product Seller Bundle: 3 products for $65 instead of $82 separately.
Tallyfinch
Books you keep on your own computer
Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries.
See Tallyfinch Download it free Compare the three apps