Inventory turnover calculator.

How the calculation works

This uses a simple opening-and-closing average. It can be misleading when stock swings widely during the period. Use more frequent counts when a large delivery lands near a period boundary.

Formula: Cost of goods used ÷ ((opening inventory + closing inventory) ÷ 2).

Worked example

The starting inputs are illustrative assumptions: Cost of goods used ($): 12000; Opening inventory value ($): 3000; Closing inventory value ($): 5000. They produce 3.00 turns. These inputs are editable and are not market prices or industry benchmarks.

Use the result

A high turnover is not automatically good if frequent stockouts interrupt service. Interpret the ratio alongside delivery cadence, lead time and spoilage.

Keep the period, unit and currency consistent across the inputs. A calculator cannot identify a missing cost from the figures you provide. Retain an invoice or stock-count record for the inputs, and use the result as a check on your operating decision.