## About Inventory Period Calculator

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

## Inventory Period Definition

In accounting, the 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 follows:

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 follows:

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