Cash Tied Up in Inventory Calculator

What this tool estimates

It converts stock into two planning figures: the cash currently locked in sellable inventory at cost, and how many days of average sales that stock covers. Together they show not just how much money is on the shelf, but how quickly it can become cash again.

Inputs to verify

Count only sellable units you own. Value them at cost — the cash you paid — not at selling price. Use a sales rate measured over the same pool: per-SKU daily sales for a single SKU, or total daily cost of goods sold for a whole stock pool.

Reading the result

A large cash figure with a short day count is usually healthy stock; the same cash with a long day count is slow money that competes with your next purchase order for working capital.

Important assumptions

The days figure is a runout estimate at constant sales, like the stockout date estimate. It ignores seasonality, promotions, and inbound replenishment. The cash figure is not a balance-sheet valuation: it excludes in-transit purchases and the effect of supplier payment terms.

When not to rely on the result alone

Subtract aged, damaged, or unsellable stock before counting units, or the estimate will overstate recoverable cash. Review payment calendars and upcoming purchase commitments before using the figure for cash planning.

Check stockout timing, estimate the cost of holding this stock, or read the planning basics.