Inventory turnover calculator.
Enter your annual COGS and average inventory value at cost. See how many times you turn stock per year — and how many days of inventory you're holding.
Your retail numbers
Defaults work for most small shops in the EU.
Turns per year
Inventory turnover — how much of your money is asleep on the shelf.
Every euro tied up in inventory is a euro that isn't earning. Turnover tells you how many times per year you "spin" your inventory: a higher number means faster cash recovery and less risk of dead stock. A lower number means money sleeping on shelves.
The formula
Turns per year = annual COGS ÷ average inventory at costDays of inventory = 365 ÷ turns
Healthy ranges by category
Grocery/convenience: 12-20 turns (food spoils). Fashion/seasonal apparel: 4-6 turns (collections rotate). Books/specialty: 3-5 turns. Hardware: 4-8 turns.
Why low turnover is a silent killer
3 turns means 120+ days of inventory sitting on shelves. That's months of rent paid on inventory not earning. It's also markdowns waiting to happen — old stock either sells at deep discount or goes to clearance. Either way, the margin you thought you had at order time is gone.
What to do
Order less, more often. Discontinue slow-movers. Negotiate consignment with suppliers on risky items. Track which SKUs pulled your average down — usually it's 20-30 items not 200.