Business & Self-Employed · United States
Inventory Turnover Calculator
Updated on 22 Oct 2026 · Checked by Aotob
You sell through your stock 6 times a year.
On average an item sits for 61 days before it sells.
Inventory turnover
6×a year
Average stock$100,000
Days to sell stock61 days
Stock to hold for 30 days$49,315
Cutting stock days from 61 to 49 would free up about $20,000 of cash.
Show the working
Turnover = 600,000 ÷ ((90,000 + 110,000) ÷ 2) = 6
Days = 365 ÷ 6 = 61
Typical turnover
| Business | Turns a year |
|---|---|
| Grocery | 12 to 20 |
| Restaurants | 25 to 50 |
| Clothing | 4 to 6 |
| Furniture | 3 to 5 |
| Car dealers | 5 to 8 |
| Jewellery | 1 to 2 |
Questions people ask
How is inventory turnover worked out?
Cost of goods sold ÷ average stock, where average stock is (opening + closing) ÷ 2.
Is higher always better?
Mostly: stock turns into cash faster. Too high can mean running out and losing sales.
What are days of inventory?
365 ÷ turnover: how long stock sits before it sells.
Updated 22 Oct 2026Source: Standard business accounting formulasChecked by AotobUses the figures you enter.Report an issue