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Inventory Turnover & Days of Stock Calculator

How fast stock sells, how many days your current stock will last, and when to reorder.

AInputsExample numbers. Type over them.
₹
1.8 crore
₹
26 lakh
₹
34 lakh
₹
31 lakh
days
days
BResultsClick a row to see its formula
B2fx= ₹1,80,00,000 ÷ ₹30,00,000
1Average inventory₹30,00,000
2Inventory turnover6×
3Days inventory outstanding60.8 days
4Daily cost of goods sold₹49,315
5Days of stock in hand62.9 days
6Reorder when stock falls to₹15,28,767

You hold more than twice your reorder level. Cash may be stuck in slow stock.

ScenariosSaved in this browser only

How this calculator works

Inventory turnover shows how many times you sell through your average stock in a year. Days of stock shows how long what you hold today will last at your normal pace.

The reorder line tells you the stock value at which to place the next purchase order, given your supplier’s lead time and a safety buffer.

Formula

Average inventory = (opening + closing) ÷ 2 Turnover = annual COGS ÷ average inventory Days inventory = 365 ÷ turnover Days of stock = stock in hand ÷ (annual COGS ÷ 365) Reorder point = daily COGS × (lead time + safety days)

Worked example

A shop with ₹1.8 crore annual COGS and average stock of ₹30 lakh turns its inventory 6 times a year, or every 61 days. Stock of ₹31 lakh today lasts about 63 days, while the reorder point with a 21-day lead time and 10 safety days is about ₹15.3 lakh.

Things to watch

  • Calculate turnover by category. A healthy average can hide dead stock.
  • Slow stock ties up cash and often ends in discounting; set an age limit for clearance.
  • Shorter supplier lead times let you hold less stock with the same safety.

Questions

What is a good inventory turnover?

Grocery and FMCG often turn 10–20 times a year, apparel 3–6, and industrial parts 2–4. Compare with your category.

Why use COGS and not sales?

Stock is valued at cost, so COGS gives a like-for-like ratio.

What is safety stock?

Extra days of stock held to cover demand spikes or late deliveries.

How often should I check this?

Monthly for the business, weekly for fast-moving items.

For planning and education only, not tax, legal or investment advice. Last reviewed 2026-10-31.