Inventory Turnover Calculator
Compare cost of goods sold with average inventory at cost.
Example result
- Average inventory
- 30,000
The two-point average may hide seasonality. Revenue should not be substituted for COGS when inventory is valued at cost.
How to calculate it
The two-point average may hide seasonality. Revenue should not be substituted for COGS when inventory is valued at cost.
Worked example
This is an illustrative scenario, not a market benchmark. Select “Reset to example” to reproduce it in the calculator.
- Cost of goods sold in period
- 240,000 currency units
- Opening inventory at cost
- 40,000 currency units
- Closing inventory at cost
- 20,000 currency units
Inventory turnover: 8×
Inventory Turnover FAQ
Can a very high turnover be a problem?
It can indicate efficient stock use or insufficient stock and missed sales. Check service levels alongside turnover.
What does this calculation leave out?
The two-point average may hide seasonality. Revenue should not be substituted for COGS when inventory is valued at cost.
Are my inputs saved or sent to a server?
Calculations run in your browser. We do not send your inputs or results to our server or analytics. A comparison stays in this tab until it is refreshed. A CSV is saved only when you choose to download it. See our privacy policy for ordinary hosting and optional analytics data.
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