What is inventory turnover?
Inventory turnover is how many times you sell through your inventory in a period. Formula: Turnover = COGS ÷ Average inventory value. Days to sell = 365 ÷ Turnover (for annual COGS). Use the same period for COGS and average inventory.
Enter your COGS and average inventory below.
Inventory turnover4.00x
Days to sell inventory91 days
Use same period for COGS and average inventory (e.g. annual). Higher turnover = faster sell-through; lower = risk of overstock.
Why it matters
Low turnover can mean overstock or slow SKUs; high turnover can mean strong demand or understocking. Use Product Profitability Analyzer and Gross Margin Calculator for margin context.
FAQ
- What is inventory turnover?
- Inventory turnover is COGS divided by average inventory value. It shows how many times you sell through your inventory in a period. Higher = faster sell-through. Use the same period (e.g. annual) for both.
- What is a good inventory turnover for ecommerce?
- It varies by category. Fast-moving goods may see 4–8× or higher; slower categories 2–4×. Very low turnover can mean overstock or slow-moving SKUs.
- Is this inventory turnover calculator free?
- Yes. Free with no signup. For margin see Gross Margin Calculator; for product profitability see Product Profitability Analyzer.