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Days Inventory Outstanding Calculator

See how long inventory is held before sale.

How to use

  1. Enter your values in the fields above.
  2. Press Calculate to see your result instantly.
  3. Use the Share button to copy a link to your result.

About this calculator

Days inventory outstanding (DIO) measures how many days, on average, a company holds inventory before selling it: DIO = (Average Inventory ÷ Cost of Goods Sold) × 365. Its inverse relationship, inventory turnover (COGS ÷ Average Inventory), shows how many times inventory is sold and replaced over the period — the two describe the same efficiency from opposite angles.

Financial analysts, supply chain managers, and business owners use DIO to gauge inventory efficiency and tie up in working capital: a rising DIO can signal slowing sales or overstocking, while a very low DIO in some industries can mean stockout risk. It's also a key input in the cash conversion cycle, alongside days sales outstanding and days payable outstanding. Enter average inventory and COGS to compute DIO and turnover.

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