Ecommerce & Shopify · 100% free

Inventory Turnover Calculator

How many times did you sell through your inventory this year? Annual turnover + days of inventory.

Shopify WooCommerce Any retailer
Annual inventory turnover
4.80x
You sold through your avg stock 4.8 times this year
Days of inventory on hand
76 days
Average inventory value
$100,000
(start + end) / 2
Typical turnover by category
CategoryTurnoverDays inventory
Apparel4–6x60–90 days
Beauty & Skincare6–10x36–60 days
Electronics8–12x30–45 days
Food & Beverage15–30x12–24 days
Furniture & Home2–4x90–180 days
Luxury & Jewelry1–3x120+ days
How to use this number: low turnover (cash trapped in stock) signals SKU rationalisation or aggressive markdowns. Very high turnover signals stockout risk — couple it with safety stock calculations to avoid running out of bestsellers.

About this tool

Inventory turnover (COGS ÷ average inventory) is the cleanest measure of how efficiently you're using working capital. Low turnover = cash trapped in stock; high turnover = lean ops but stockout risk. Compute turnover, days of inventory, and benchmark against category.

Low turnover vs high turnover

Turnover below your category benchmark = cash trapped in stock and higher markdown risk. Turnover above = lean ops, but stockouts become likely without sharp safety-stock discipline. Most operators target slightly above the category average — efficient enough to free cash, conservative enough to avoid losing bestsellers.

Levers to raise turnover

  • • Cull slow SKUs (the bottom 30% usually contributes <5% of revenue)
  • • Negotiate smaller, more frequent POs with key suppliers
  • • Promote tail inventory rather than ordering more of it
  • • Pre-sell new SKUs (waitlist) to validate before manufacturing

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