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How much cash is sitting in inventory?

Connect inventory turns, days on hand, and a target stocking level.

Example scenario

Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.

Annual cost of goods sold
$3,000,000
Average inventory at cost
$750,000
Target inventory days
60 days
Modeled inventory cash release$256,849

Example result only, not a forecast or promise.

Current inventory days
91.3 days
Annual inventory turns
4×
Target inventory at cost
$493,151

What to do with this result

Review slow-moving items and stockout risk by SKU before reducing inventory targets.

Know what is inside the model.

Planning model, not personalized financial advice. Your inputs remain in your browser.

Calculation method

Turns = annual COGS / average inventory. Days = inventory / annual COGS × 365. Target inventory = COGS / 365 × target days.

Assumptions and limitations

  • 365-day year and inventory valued at cost.
  • No write-down, demand growth, seasonality, or service-level impact is included.

Turn the number into a decision.

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