Inventory Turnover Calculator
Inventory you cannot move is cash you cannot spend. Enter your COGS and inventory to see how fast your stock actually turns, how many days it takes to sell, and your sell-through rate.
Your period
Optional: sell-through rate
Watch your turnover without the spreadsheet.
- ✓ Days-to-sell and turnover tracked automatically
- ✓ Inventory aging buckets flag slow movers
- ✓ See which gear ties up your cash
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Your velocity
Turnover = COGS ÷ average inventory. Days to sell = period ÷ turnover. Online gear resale commonly runs 6-12 turns per year; slower than that means cash is sitting on the shelf.
Estimates only. Inventory turnover and days-to-sell are standard accounting metrics; figures depend on the inputs you provide.
How inventory turnover works
Inventory turnover tells you how many times you sold and replaced your entire stock over a period. It is the clearest signal of whether your cash is working or sitting still.
| Metric | Formula | Good range (online resale) |
|---|---|---|
| Turnover ratio | COGS ÷ average inventory | 6-12× per year |
| Days to sell (DSI) | Period days ÷ turnover | 30-60 days |
| Weeks of supply | Days to sell ÷ 7 | 4-9 weeks |
| Sell-through rate | Units sold ÷ units available | 70%+ |
See it on real numbers
Say your COGS for the year was $60,000, you started with $12,000 of inventory and ended with $8,000, and you sold 180 of the 240 units you listed:
| Average inventory | $10,000 |
| Inventory turnover | 6.0× per year |
| Days to sell | 61 days |
| Weeks of supply | 8.7 weeks |
| Sell-through rate | 75% |
Six turns a year is solid for online gear. If that number were 2, you would know cash was stuck on the shelf and it was time to discount the slow movers.
How to improve your turnover
- Find your slow movers. Sort by days-to-sell and act on anything sitting past your target before it becomes dead stock.
- Reprice or Bump the agers. A small price cut or promoted placement often beats letting capital sit idle for months.
- Buy to your sell-through. If a category sells through at 75%, buy to that pace instead of overstocking on a hunch.
- Reinvest freed cash into fast movers. The faster your turns, the more times the same dollar earns you margin in a year.
Verbstack tracks turnover, days-to-sell, and inventory aging for your Reverb shop automatically. Connect your shop to see it update with every sale.
Frequently asked questions
How do you calculate inventory turnover?
Inventory turnover = cost of goods sold (COGS) divided by average inventory, where average inventory is your beginning inventory plus ending inventory divided by two. A turnover of 6 means you sold and replaced your entire inventory six times during the period.
What is a good inventory turnover ratio for resellers?
For online gear and used-goods resale, 6 to 12 turns per year is healthy. Brick-and-mortar shops often run 2 to 3. Below 2 usually means cash is tied up in slow-moving stock; very high turnover can signal you are selling out and leaving sales on the table.
What is days to sell (days sales of inventory)?
Days to sell, also called days sales of inventory (DSI), is the average number of days it takes to sell through your inventory. It equals your period length divided by your turnover ratio. Lower is faster: at 6 turns a year, days to sell is about 61.
What is the difference between turnover and sell-through rate?
Turnover measures how many times you cycle your whole inventory over a period and is based on cost. Sell-through rate measures the percentage of a specific batch of units that sold, and is based on units. Turnover is the big-picture health metric; sell-through is best for judging a single product or drop.
Why does inventory turnover matter for cash flow?
Every dollar sitting in unsold inventory is a dollar you cannot spend on new gear or marketing. Faster turnover frees up working capital and reduces the risk of aging, slow-moving stock. Tracking it tells you whether your buying is keeping pace with your selling.
Turn inventory into cash, faster.
Connect your Reverb shop and track turnover, days-to-sell, and aging on every listing automatically.
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