Inventory Turnover & Days on Hand Calculator
How many times a year does your stock sell through, and how long does a dollar of inventory sit on the shelf?
Average inventory
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Turnover
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Days on hand
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The formulas
- Average inventory = (starting inventory + ending inventory) ÷ 2
- Inventory turnover = cost of goods sold ÷ average inventory
- Days on hand = days in the period ÷ inventory turnover
Learn what to do with the result in inventory turnover for small sellers.
Common questions
What is a good inventory turnover ratio?
It depends on what you sell. Compare your own number over time, or against sellers of similar products, rather than a single 'good' number.
Should I use cost or retail value?
Use cost for both cost of goods sold and inventory, so the two numbers match.