Inventory turnover calculator
See how fast your stock sells, what it earns for every unit of money tied up in it, and how many days you have left before you run out.
Example numbers. Replace them with yours.
- Days of stock left
- 40 days
- Reorder in
- 30 days
- Turnover per year
- 6×
- Days to sell inventory
- 60.8 days
- GMROI
- 8×
What it calculates
Inventory turnover is how many times you sell through your average stock in a year. Days to sell is the same thing in days. GMROI shows the gross profit each unit of money invested in stock earns. Days of stock left divides what you have by what you sell each day, so you know when to reorder.
How to read the result
If days left is close to your lead time, reorder now. Low turnover means cash sits in stock. Compare products with each other to find the slow ones.
Learn the metric:COGSGross margin
The formula
Turnover = COGS ÷ average inventory value Days to sell = 365 ÷ turnover GMROI = (Revenue − COGS) ÷ average inventory value Days left = Units in stock ÷ units sold per day Reorder in = Days left − lead time
Worked example
Example inputs
- COGS per year
- USD 600,000
- Average inventory value
- USD 100,000
- Revenue per year
- USD 1,400,000
- Units in stock
- 800
- Units sold per day
- 20
- Supplier lead time
- 10
Results
- Days of stock left
- 40 days
- Reorder in
- 30 days
- Turnover per year
- 6×
- Days to sell inventory
- 60.8 days
- GMROI
- 8×
What changes the result
Units sold per day at five values. Every other input stays as in the worked example; the highlighted row is the example.
| Units sold per day | Days of stock left | Reorder in |
|---|---|---|
| 10 | 80 days | 70 days |
| 15 | 53.3 days | 43.3 days |
| 20 | 40 days | 30 days |
| 25 | 32 days | 22 days |
| 30 | 26.7 days | 16.7 days |
Use your real numbers
Analify reads inventory levels, units sold and product costs from Shopify, so days of stock left uses your real sales rate.
Analify already reads 5 of these 6 inputs live, from Shopify
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Questions
How do I calculate inventory turnover?
Divide cost of goods sold for the year by your average inventory value at cost.
What is GMROI?
Gross margin return on inventory: gross profit divided by average inventory value. It shows what your stock earns.
How many days of stock should I keep?
At least your supplier lead time plus a safety buffer. The reorder point calculator sizes the buffer.
Do you store what I enter?
No. The calculation runs in your browser and nothing is sent to Analify.
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