Inventory Turnover Ratio Calculator

Measure efficiency in managing business inventory.

Cost of Goods Sold ($) Average Inventory Value ($)

What is Inventory Turnover Ratio Calculator?

Inventory turnover measures how many times your business sells through its entire stock in a given period. A high turnover means your products are moving fast and cash is not trapped in unsold goods. This calculator reveals how efficiently you are managing your inventory.

How to Use This Tool

1. Enter your cost of goods sold for the period. 2. Input the average inventory value (beginning inventory + ending inventory divided by 2). 3. Click calculate to get your turnover ratio.

💡 Pro Tip: Track turnover by product category, not just overall. You may discover that 20% of your products account for 80% of your turnover — and the rest are dead stock draining storage costs. Use this insight to rationalize your catalog!