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Calcimator

Inventory Turnover Calculator

Calculate inventory turns per year and weeks of supply.

Inputs

$
$
%
%

Results

Inventory Turnover Ratio

5

Days to Sell73 days
Weeks of Supply10.4 weeks
Annual Holding Cost$25,000.00
GMROI3.33
How to Use This Calculator
  1. Enter Annual COGS and Average Inventory Value from your balance sheet.
  2. Input your Gross Margin (%) and Annual Holding Cost Rate (%).
  3. Review Inventory Turnover Ratio — industry benchmarks vary by category (fashion: 4-6x, grocery: 20-30x).
  4. Check Days to Sell and Weeks of Supply to manage reorder timing.
  5. Use Holding Cost to identify slow-moving SKUs worth discounting or liquidating.

What each input means

Annual COGS
Annual cost of goods sold.
Average Inventory Value
Average value of inventory on hand.
Gross Margin
Gross margin as a percentage of sales (Sales − COGS) ÷ Sales, used for GMROI.
Annual Holding Cost Rate
Annual cost to hold inventory as % of value (storage, insurance, obsolescence).

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Annual COGS = 500000, Average Inventory Value = 100000, Gross Margin = 40%, Annual Holding Cost Rate = 25 = 4 input(s) provided
  2. Calculate Inventory Turnover Ratio
    Inventory Turnover Ratio
    5 = 5
  3. Calculate Days to Sell
    Days to Sell
    73 = 73
  4. Calculate Weeks of Supply
    Weeks of Supply
    10.4 = 10.4

Engine last updated . Checked against 3 independently-derived tests — how we verify calculators.

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