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StockSense guide

How to Calculate Days of Inventory Remaining

A stock count tells you how many units you have. It doesn't tell you how long they will last. Days of inventory remaining turns a quantity into a deadline, and this guide shows how to calculate it and what to compare it against.

The formula

Divide the units you have on hand by the average number of units you sell per day. The result is roughly how many days of selling you have left at the current pace.

Work it through

Say you have 180 units of a product, and you sold 84 units over the last 28 days. That's an average of 3 a day, so you have about 60 days of stock left.

InputValue
Units on hand180
Sold in the last 28 days84
Average daily sales3
Days of inventory remaining60

Where to find it in Shopify

Shopify calculates this for you in the Inventory remaining per product report. In your admin, go to Analytics, then Reports, and filter the category to Inventory. The report divides each variant's ending quantity by its average daily sales, using the last 28 days as the sales window.

Compare it to your lead time

The number only means something next to your supplier's lead time. If a product has 20 days of stock left and your supplier takes 30 days to deliver, you are already late, even though the shelf looks full.

To turn this into a trigger you can act on, set a reorder point with a safety stock buffer.

Where the simple version goes wrong

A straight average assumes the next month looks like the last one. That breaks down in a few common situations, so treat the number as an estimate, not a promise.

Doing this at scale

StockSense forecasts demand for each SKU from your order history, using velocity, trend, seasonality and lead-time-aware safety stock. It recommends a reorder point, quantity and date, ranks SKUs by revenue at risk, and drafts purchase orders grouped by supplier. See StockSense.

Doing this for a whole catalog or every order?

See how StockSense handles it for you.

Explore StockSense →

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