How to use this calculator
Enter beginning inventory, ending inventory, COGS, current units, daily unit sales, and supplier lead time. The calculator estimates turnover, days on hand, and reorder point.
#709 · Business Tool
Retail Inventory Calculator
Use this retail inventory calculator to measure inventory turnover, days on hand, reorder point, stockout risk, overstock warning, and carrying cost risk.
Calculator
Business inputs$
$
$
units
units
days
Ad space
What the result means
Inventory turnover shows how efficiently stock becomes sales. Low turnover can trap cash in inventory, while too little stock creates stockout risk and lost revenue.
Average Inventory = (Beginning Inventory + Ending Inventory) ÷ 2. Inventory Turnover = COGS ÷ Average Inventory. Days on Hand = 365 ÷ Turnover.
Benchmark: turnover above 8 is excellent, 4 to 8 is good, 2 to 4 is average, and below 2 is weak.
Example calculation
If average inventory is $45,000 and COGS is $240,000, inventory turnover is 5.33 times per year and days on hand is about 68 days.
Tips for better results
- Set reorder points using real daily sales and supplier lead time.
- Watch slow-moving items before ordering more stock.
- Balance stockout risk against cash tied up in excess inventory.
FAQ
What is a good inventory turnover ratio?
A turnover ratio above 8 is strong for many retail categories, while below 2 may indicate slow-moving stock.
How much inventory should a retail store keep?
Keep enough inventory to cover demand during supplier lead time plus safety stock, without tying up unnecessary cash.
When should I reorder inventory?
Reorder when current inventory approaches expected demand during supplier lead time plus safety stock.
How do I avoid stockouts?
Track daily sales, supplier lead time, reorder points, and safety stock for important products.
How do I calculate inventory days on hand?
Divide 365 by inventory turnover to estimate how many days inventory stays on hand.
Related calculators
Business decision modules
| Module | Included |
|---|---|
| Main Result | Yes |
| Summary | Yes |
| Interpretation | Yes |
| Status | Yes |
| Health Score | Yes |
| Recommendation | Yes |
| Industry Benchmark | Yes |
| Example Calculation | Yes |
| FAQ 5 | Yes |
| Related Calculators 4 | Yes |
Browse more calculators
Category hubsFinanceInvestment, savings, debt, retirement, and money planning.View all
MarketingAds, campaign profit, conversion, ROAS, and ROI tools.View all
Social MediaYouTube, Instagram, followers, engagement, and creator metrics.View all
ProductivityTime, focus, task, schedule, habit, and capacity tools.View all
BusinessProfit, margin, unit economics, operations, and cash flow.View all
E-commerceStore revenue, pricing, order value, conversion, and profit.View all
Real EstateMortgage, rent, property return, affordability, and cash flow.View all
StartupRunway, CAC, LTV, burn rate, growth, and SaaS metrics.View all
TaxIncome tax, deduction, paycheck, and estimated tax planning.View all
SalaryPaycheck, wage, bonus, overtime, commission, and net pay.View all
EducationStudy planning, grades, score tracking, and learning calculators.View all
HealthFitness, nutrition, body metrics, and wellness estimates.View all
LifestyleDaily life, planning, personal decisions, and simple estimates.View all
TravelTrip cost, budget, distance, itinerary, and travel planning tools.View all