All business decision tools
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
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.