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Inventory Turnover Calculator
Find out how many times a year your stock turns over, how many days of inventory you are holding, and what your dead stock is quietly costing you to keep. Everything runs in your browser — nothing is saved or sent.
Your numbers
What the stock you sold cost you — not what you sold it for.
Your dead stock, at cost.
Insurance, space, capital, shrinkage. 20–25% is a common estimate.
What it means
- Average inventory at cost
- $100,000
- Inventory turnover ratio
- 1.80×
- Days of inventory on hand
- 203 days
- Dead stock share
- 18.0%
- Annual cost of holding dead stock
- $3,960
Reading it
Normal for a specialist shop carrying high-value stock. Worth checking whether the slow half is dragging the average down.
How inventory turnover is calculated
Turnover ratio = cost of goods sold ÷ average inventory at cost. Average inventory is the opening value plus the closing value, divided by two.
Days of inventory on hand = 365 ÷ turnover ratio. It is the same figure in a form you can feel: how long an average item sits before it sells.
Carrying cost is what stock costs you simply by existing — the capital tied up in it, the space it occupies, insurance, and the value it loses over time. Most retailers estimate it at 20–25% of stock value per year, which is why a shelf of unsold stock is more expensive than it looks.
A specialist shop holding serialized, high-value stock should not expect grocery-store turnover. The useful comparison is not against other industries but against your own shop last year, and between the fast and slow halves of your own floor.
Getting the inputs right
This calculator is only as good as the stock valuation you feed it — which is the part most shops running on a spreadsheet cannot produce on demand. Serialized inventory software keeps live stock value at cost and at retail, so these numbers are a click away rather than an afternoon of counting. If a chunk of your slow stock is other people's, consignment tracking keeps it out of your valuation entirely, and rental inventory tracking shows which units earn their keep on hire instead of sitting on a shelf.
Know these numbers without the spreadsheet
Music Shop Suite tracks every unit by serial and keeps stock value, turnover, and aging stock current as you sell, rent, and repair. $49/month, everything included.
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