DIO Calculator

Days Inventory Outstanding (DIO) Calculator

How long does stock sit before it sells? Lower DIO means less cash tied up in inventory.

Current stock on hand

Annual direct costs

For benchmark comparison

Your Days Inventory Outstanding

days
Industry average
Inventory turns/year
Cash in excess stock

How to reduce your DIO

    How This Calculator Works

    DIO = (Inventory ÷ Cost of Goods Sold) × 365
    Inventory Turnover = 365 ÷ DIO

    Lower DIO is generally better but too low risks stockouts. Match DIO to your sales velocity and supply lead times.

    This calculator is for educational purposes only and does not constitute financial advice. Consult a qualified accountant for guidance specific to your business.

    This content is for educational purposes only and does not constitute financial advice. Consult a qualified accountant or financial adviser for guidance specific to your business.

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