Inventory ROI Calculator

Inventory ROI. Calculate profit, ROI and annualized inventory return from inventory cost, sales proceeds and days cash is tied up.

Formula reviewed September 1, 2026 · Runs locally in your browser

Inventory cash invested ($)Net proceeds after selling costs ($)Days cash is tied up

Enter your numbers and calculate.

Worked example

$5,000 of inventory that returns $7,500 net creates $2,500 profit, a 50% ROI. If the cycle takes 90 days, that is roughly 4.06 theoretical turns per year.

What to do with the result

Fast inventory turns can make a lower-ROI item more attractive than slow inventory. Compare both return percentage and how long cash stays trapped.

Frequently asked questions

What does inventory ROI measure?

Profit relative to the cash invested in inventory.

Is annualized ROI guaranteed?

No. It assumes a similar cycle could repeat with similar economics and no idle time.