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Inventory Turnover & Carrying Cost Calculator

Analyze stock efficiency, Days Sales in Inventory (DSI), and the annual hidden costs of holding unsold stock.

Industry Norms & Sector Benchmarks
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Stock & Cost Parameters

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Operational Efficiency Analysis

Inventory Turnover Ratio6.00xTimes stock was refreshed per year
Days Sales in Inventory (DSI)61 DaysAverage shelf-life of a SKU

Carrying Cost Composition

Hidden Stock Expenditure Split
Annual Holding Cost$18,750
Warehouse Cost$3,750
Capital Opportunity$11,250
Inventory Risk$2,813
Calculator guide

How to use the Inventory Turnover & Holding Calculator

Calculate inventory turnover, days inventory outstanding and inventory holding costs.

01Set inputsChoose values, units and assumptions.
02Apply the modelInventory turnover = Annual COGS ÷ Average inventory. Days inventory = 365 ÷ Turnover. Annual holding cost = Average inventory × Holding-cost rate.
03Read the resultCheck the output against the assumptions before using it.
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What this calculator does

Enter annual cost of goods sold, average inventory and an estimated annual carrying-cost rate. The calculator translates those inputs into turnover speed, inventory days and annual carrying cost.

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Formula & method

Inventory turnover = Annual COGS ÷ Average inventory. Days inventory = 365 ÷ Turnover. Annual holding cost = Average inventory × Holding-cost rate.

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Assumptions & notes

  • Average inventory is preferable to ending inventory when the data is available.
  • The holding-cost rate is an assumption covering the carrying costs relevant to the business.
  • The cost breakdown displayed by the chart is an illustrative allocation, not an accounting classification.
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