Inventory Turnover Calculator
How many times a year your stock sells through.
Inventory turnover
6.0×
61 days of inventory
How the Inventory Turnover Calculator works
Turnover measures how hard your stock is working. Cash tied up in inventory that turns twice a year is doing far less than the same cash turning eight times — and the difference compounds, because each turn brings its margin with it.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How is inventory turnover calculated?
Cost of goods sold ÷ average inventory value, both at cost. £240,000 of COGS against £40,000 of average inventory gives 6 turns a year. Using retail value on one side and cost on the other is the most common error and inflates the figure.
What is a good inventory turnover?
It varies enormously. Grocery runs 15-25 turns, general ecommerce 4-8, apparel 3-5, jewellery and furniture 1-3. Compare against your own sector and your own history rather than a universal target.
Can turnover be too high?
Yes. Very high turnover often means you are stocking out and losing sales you never see. Read it alongside fill rate — high turns with a poor fill rate means you are running too lean, not running efficiently.
How do I improve turnover?
Clear dead stock, order smaller quantities more often, and stop reordering slow movers on autopilot. Discounting to move aged stock lowers margin but frees cash — whether that trade is worth it depends on what the cash can earn elsewhere.