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Inventory Turnover Ratio Calculator

Calculate inventory turnover ratio and days sales in inventory from COGS and beginning and ending inventory.

About this tool

Inventory Turnover Ratio Calculator is a free, in-browser tool that measures how many times you sell and replace your stock in a period. Enter the cost of goods sold (COGS) and your beginning and ending inventory, and it returns the turnover ratio, the days sales in inventory, and your average inventory. Nothing is uploaded — the math runs on your device.

Average inventory is (beginning + ending) ÷ 2. Inventory turnover is COGS ÷ average inventory — how many times the average stock was sold through. Days sales in inventory (DSI) is 365 ÷ turnover, the average number of days a unit sits before it sells. Using COGS rather than sales revenue keeps both sides of the ratio at cost, which is the standard, more accurate convention.

Use it to benchmark stock efficiency: a higher turnover and a lower DSI mean leaner, faster-moving inventory, while a low ratio can flag overstocking or slow sellers. Compare across periods or against industry norms to spot trends.

Frequently asked questions

How is inventory turnover calculated?
Turnover = cost of goods sold ÷ average inventory, where average inventory is (beginning + ending) ÷ 2. It tells you how many times the average stock level was sold and replaced during the period.
What is days sales in inventory (DSI)?
DSI = 365 ÷ turnover ratio. It converts the ratio into the average number of days an item stays in stock before it is sold. Lower DSI means faster-moving inventory.
Should I use COGS or sales revenue?
Use cost of goods sold. Inventory is carried at cost, so dividing COGS by average inventory keeps both figures on the same cost basis. Using sales revenue inflates the ratio because it includes your markup.
Is my financial data uploaded?
No. COGS and inventory figures are processed entirely in your browser and never leave your device.

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