Restaurant Inventory Turnover Calculator
Enter beginning and ending inventory and purchases for the period, by category if you like, to get cost of goods sold, average inventory, how many times your stock turned over and how many days of stock you carry.
Your period
| Category | Beginning inventory ($) | Purchases ($) | Ending inventory ($) | Remove |
|---|---|---|---|---|
Results
Inventory turnover is how many times you use up and replace your average inventory in a period: cost of goods sold ÷ average inventory, where average inventory is (beginning + ending) ÷ 2. Days on hand turns it around: days in the period ÷ turnover is how many days your stock would last.
Inventory turnover formulas
- Cost of goods sold: beginning inventory + purchases − ending inventory.
- Average inventory: (beginning inventory + ending inventory) ÷ 2.
- Inventory turnover: cost of goods sold ÷ average inventory.
- Days on hand: days in the period ÷ turnover.
- Turnover per year: turnover × 365 ÷ days in the period.
How to calculate inventory turnover
- Count at the start and the end. Value your inventory at the start and end of the period, at cost.
- Add purchases. Everything received during the period, from the invoices.
- Split by category. Food, liquor, wine and beer turn at very different speeds, so enter them separately.
- Compare periods. Watch each category against its own history rather than one target.
Worked example
Food: $8,000 at the start, $30,000 purchased and $7,000 at the end of a 30-day month. Cost of goods sold is $31,000 and average inventory $7,500, so food turned over 4.13 times: about 7.3 days of stock on hand. Liquor: $12,000, $9,000 and $11,500 gives $9,500 used on $11,750 of average inventory, a turnover of 0.81 and about 37 days on hand. Together: 2.10 times, about 14 days.
What the number tells you
High turnover means stock moves quickly: less cash sits on the shelves and less is at risk of spoiling. Too high, and you may be running out and placing a lot of small orders.
Low turnover means stock sits: money tied up, more chance of spoilage, and often slow-selling menu items. Fresh food naturally turns faster than liquor, wine and dry goods, so compare each category with its own history.
How to improve inventory turnover
- Set par levels and order up to them. Par level calculator
- Order perishables in smaller amounts, more often.
- Cut slow-moving items from the menu and the back bar.
- Rotate stock first in, first out. FIFO storage guide
- Count your highest-value categories every week. Inventory count sheet
Inventory turnover FAQ
What is inventory turnover in a restaurant?
How many times you use up and replace your average inventory in a period: cost of goods sold ÷ average inventory.
How do you calculate inventory turnover?
Divide cost of goods sold by average inventory. With $31,000 of food used and $7,500 of average inventory, turnover is 31,000 ÷ 7,500 = 4.13 for the period.
What is a good inventory turnover for a restaurant?
There is no single standard: perishable food turns much faster than liquor, wine and dry goods. Track each category against its own history and look at days on hand alongside it.
What are days of inventory on hand?
How many days your stock would last at the current rate of use: days in the period ÷ turnover. A turnover of 4.13 in 30 days is about 7.3 days on hand.
Should I calculate turnover for food and liquor separately?
Yes. They turn at very different speeds, and a total hides that. Enter each as its own category.
Is this inventory turnover calculator free?
Yes. It needs no sign-up, and the numbers you enter stay in your browser.
Related free tool
Par Level Calculator
Par levels from weekly use, delivery days and safety stock, with what to order from your count, rounded to whole cases.
Open calculator