Trapped-Cash Calculator
How much cash is sitting on your shelves?
Enter four numbers to see your days of inventory and how much cash you'd free by carrying fewer days of stock.
Calculator inputs
Your estimate
Days of inventory today
0days
Cash you could free
$0
You're carrying about 133 days of inventory. Carrying 20 fewer days would free up roughly $60,274, which is 15% of the cash sitting in stock today.
Show the math
- Annual COGS = revenue × (1 − gross margin) = $2,000,000 × 0.55 = $1,100,000
- Daily COGS = annual COGS ÷ 365 = $3,014
- Days of inventory = inventory ÷ daily COGS = $400,000 ÷ $3,014 = 132.7 days
- Cash freed = days cut × daily COGS = 20.0 × $3,014 = $60,274
This is an estimate, not financial advice. It uses your inputs only. No industry benchmarks.
FAQ
Understanding the numbers.
What is days of inventory?
Days of inventory (also called DIO, days inventory outstanding) is how many days your current stock would last at your current rate of sales, measured at cost. Lower means less cash sitting on shelves.
Why does cutting days free up cash?
Every day of inventory you carry costs roughly one day of cost of goods sold. Carry fewer days through tighter reorder points, smaller purchase orders or clearing slow SKUs, and that cash stays in the bank.
How many days should I carry?
It depends on your lead times, seasonality, supplier minimums and stockout risk. We don't publish a benchmark because the right number is specific to each SKU. That's what the SKU-by-SKU version is for.
Is this financial advice?
No. This is an estimate, not financial advice. It uses only the numbers you enter.
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