Days In Inventory Calculator

Enter the cost of sold items, beginning inventory balance, and ending inventory balance into the calculator. The calculator will evaluate the days in inventory.

Days In Inventory Formula

The following equation can be used to calculate the average days in inventory of an item.

D = 365/ (COGS / ( BI + EI /2 ) )

  • Where D is the days in inventory
  • COGS is the total cost of sold items
  • BI is the beginning inventory balance ($)
  • EI is the ending inventory balance ($)

Days in Inventory Definition

Days in inventory is an average metric of the days a item sits in inventory before it’s sold. It’s important to note that this is an average, and the actual days in inventory could vary greatly from item to item especially at low volumes.

days in inventory calculator

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