Online Tools and Calculators > Financial Calculators > Inventory Period Calculator

Inventory Period Calculator

Annual cost of goods sold:
Average inventory:

About Inventory Period Calculator

The online Inventory Period Calculator is used to calculate the inventory period.

Inventory Period Definition

In accounting, inventory period is a measure of the average number of days inventory is held, calculated by dividing the inventory by the average daily cost of goods sold. It is also called days in inventory.

Inventory Period Formula

The inventory period calculation formula is as following:

Inventory Period = 365 × Average Inventory / Annual Cost of Goods Sold

The inventory period also can be calculated as 365 divided by inventory turnover:

Inventory Period = 365 / Inventory Turnover

The formula for average inventory is as following:

Average inventory = (Beginning inventory + Ending inventory) / 2

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