ShipMargin
InventoryVerified formula

Inventory Turnover Calculator

Check whether cash is moving through inventory or sitting in stock.

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Decision inputs
Adjust the example values to match one product, order, shipment, or planning period.
Live result Deterministic
Decision summary
Calculated from the visible formula and assumptions on this page.

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Edit the example and calculate. No account is required.

How to use this tool

A decision, not just an output

Measure how often inventory is sold and replaced and convert the ratio into days of inventory outstanding. Read the output alongside its interpretation, assumptions, limitations, and source. Marketplace rates and external requirements should always be confirmed at the linked official source.

Formula & example

Transparent method

Turnover = COGS ÷ average inventory; inventory days = period days ÷ turnover.

Example: $120,000 COGS and $15,000 average inventory produces 8 turns and about 45.6 inventory days.

Assumptions

  • • Beginning and ending inventory are measured on the same cost basis.
  • • COGS and period days cover the same reporting period.

Limitations

  • • Seasonality and SKU-level variation require a more detailed analysis.

Frequently asked questions

Is the Inventory Turnover Calculator free?

Yes. The primary result is available without creating an account or entering an email address.

How is the result calculated?

Turnover = COGS ÷ average inventory; inventory days = period days ÷ turnover.

What should I verify before using it?

Seasonality and SKU-level variation require a more detailed analysis.

Are my inputs private?

Core inputs are processed in your browser. ShipMargin records anonymous tool interaction events, not the business values entered into this form.