METHOD & GUIDANCE
How this calculation works
Enter figures from the same period and on a consistent VAT-inclusive or VAT-exclusive basis. Tool IQ recalculates every output immediately; nothing you enter is saved or sent to us.
How to use the result
Compare turnover by product line and across consistent periods; a blended company figure can hide slow-moving inventory.
Worked example
Opening inventory of 30,000 and closing inventory of 50,000 average 40,000. With 240,000 COGS, inventory turns six times.
Common mistakes
- Using sales revenue instead of cost of goods sold.
- Using only the closing balance in a seasonal business.
- Assuming a higher turnover is always better despite stockout risk.
Frequently asked questions
Is this calculator free?
Yes. It requires no account and stores no calculation inputs.
Can I use the answer for a formal filing?
No. It is a planning estimate, not accounting, tax, legal or investment advice. Confirm material decisions with a qualified professional.
Should I include VAT?
Use a consistent basis throughout. Businesses that recover input tax commonly model net figures; consumer-facing prices are often considered gross.
Continue the decision
- Cash Runway Calculator — Estimate how many months your available cash will last.
- Contribution Margin Calculator — See how much each sale contributes to fixed costs.
Method reviewed 26 July 2026. Figures are illustrative and calculated locally in your browser.