How to use the Days in Inventory Calculator
Enter the average inventory value and cost of goods sold for the year and the result appears straight away. Everything runs in your browser, so nothing you type is uploaded.
How it works
Calculated from the inputs shown in this tool.
Examples
- 40,000 inventory, 300,000 COGS
Days in inventory: 48.66666667
- 85,000 inventory, 240,000 COGS
Days in inventory: 129.27083333
- 12,000 inventory, 400,000 COGS
Days in inventory: 10.95
Limitations and assumptions
Confirm assumptions, units and applicable local rules before relying on results. Detailed content, accessibility and edge-case review remains ongoing.
Frequently asked questions
What is the formula?
Average inventory ÷ cost of goods sold × 365.
Is a lower number better?
Usually, since cash is not tied up in stock, but too low can cause stockouts.
How does it relate to turnover?
Days in inventory = 365 ÷ inventory turnover.
What is a typical value?
It varies by industry; grocery is short, machinery is long.