Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Inventory turns per year
6.00
Days of inventory on hand
60.8
Annual carrying cost
$26,400
Cash tied up in stock
$120,000
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How to use this
- 1Enter annual cost of goods sold ($).
- 2Enter average inventory value ($).
- 3Enter annual carrying cost rate (%).
- 4Read your inventory turns per year on the right — it updates as you type.
- 5Hit Share to keep the scenario or send it to someone.
About this calculator
Turnover shows how many times you sell through your stock in a year. Low turns mean cash sitting on shelves; very high turns mean you are probably stocking out and losing sales.
Worked example
Using the values the calculator loads with:
Inputs
- Annual cost of goods sold: 720000 $
- Average inventory value: 120000 $
- Annual carrying cost rate: 22 %
Results
- Inventory turns per year: 6
- Days of inventory on hand: 60.8
- Annual carrying cost: $26,400.00
- Cash tied up in stock: $120,000.00
What each field means
Inputs
- Annual cost of goods sold ($)
- The annual cost of goods sold used in the calculation, measured in $. Starts at 720000 $ so you have a working example on load.
- Average inventory value ($)
- The average inventory value used in the calculation, measured in $. Starts at 120000 $ so you have a working example on load.
- Annual carrying cost rate (%)
- The annual carrying cost rate used in the calculation, measured in %. Starts at 22 % so you have a working example on load. Accepted range: 0–60 %.
Results
- Inventory turns per year
- Returned as a decimal number and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Days of inventory on hand
- Returned as a decimal number. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Annual carrying cost
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Cash tied up in stock
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
How does the inventory turnover calculator work?
Turnover shows how many times you sell through your stock in a year. Low turns mean cash sitting on shelves; very high turns mean you are probably stocking out and losing sales. The underlying maths is: Turnover = COGS ÷ Average inventory. Days on hand = 365 ÷ Turnover.
What do I need to enter?
3 values: annual cost of goods sold, average inventory value, and annual carrying cost rate. Each field starts with a sensible default, so you can change one number at a time and watch the result move.
What does the inventory turns per year result mean?
It is returned as a decimal number and updates live as you edit the inputs, so you can compare two or three versions of a scenario in a few seconds.
Is this calculator free, and do I need an account?
Yes, it's free, and no account is required. Nothing you type is stored on our servers — the maths runs entirely in your browser.
How accurate is the result?
It applies the standard formula exactly, so the arithmetic is precise. Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
Who is this tool for?
It's built for anyone comparing money scenarios before committing — budgeting a payment, sanity-checking a quote, or seeing what a change in rate or term actually costs.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Inventory Turnover Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/inventory-turnover
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/inventory-turnover" target="_blank" rel="noopener">Inventory Turnover Calculator — RevenueLab</a> (2026).</p>
Source: [Inventory Turnover Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/inventory-turnover) (2026).