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Inventory Turnover Calculator
Free inventory turnover calculator for ecommerce businesses. Enter your COGS and average inventory value to calculate your turnover ratio and days to sell. Add daily sales and lead time to get your reorder point and identify slow-moving stock before it becomes a cash flow problem.
Cost of goods sold in the selected period
(Opening + Closing stock) / 2
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Frequently Asked Questions
What is a good inventory turnover ratio for ecommerce?
For ecommerce, a turnover ratio of 4-6x per year is generally considered good, meaning you turn over your entire inventory every 2-3 months. Fast-moving consumer goods might turn 8-12x. Below 2x typically indicates excess stock and cash flow risk.
How do I calculate the reorder point?
Reorder point = (Average daily sales x Lead time in days) + Safety stock. If you sell 5 units per day, your supplier takes 14 days, and you want 7 days of safety stock, your reorder point is (5 x 14) + (5 x 7) = 105 units. This calculator works it out automatically once you enter your daily sales and lead time.
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