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Stock-to-Sales Ratio Calculator

Calculate the retail stock-to-sales ratio from beginning-of-month inventory and monthly sales, the sales-to-stock percentage, weeks of supply and the inventory to plan for next month’s sales.

Inventory at the start of the month

Sales for the month

Planned sales next month

Target stock-to-sales ratio

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How it works

Stock-to-sales ratio = beginning-of-month (BOM) inventory ÷ sales for the month · Sales-to-stock = sales ÷ BOM inventory · Planned BOM inventory = planned sales × target ratio · Weeks of supply ≈ ratio × 4.33

Retail buyers use the stock-to-sales ratio to plan how much merchandise must be on hand at the start of each month. A ratio of 3 means the store opens the month with three times the inventory it expects to sell — enough to show full assortments without tying up too much cash. Ratios differ by category (fashion and jewelry run high, grocery very low) and season, so planners set a target ratio for each month and multiply it by planned sales. The U.S. Census Bureau publishes the inverse view, inventories-to-sales ratios, for whole retail sectors.

Worked example

A store opens the month with $120,000 of inventory and sells $40,000: the stock-to-sales ratio is 120,000 ÷ 40,000 = 3.00, about 13.0 weeks of supply. To support $45,000 of planned sales next month at the same ratio of 3, it should open with $135,000 of stock.

Sources: U.S. Census Bureau — Manufacturing and Trade Inventories and Sales

Frequently asked questions

What is a good stock-to-sales ratio?

It depends on the category. Fast-moving goods such as groceries can run below 1, general merchandise around 2–4 and slow categories like jewelry or furniture much higher. Compare with your own history and category benchmarks.

Is a high stock-to-sales ratio bad?

A ratio that is high for your category means cash tied up in stock, more markdowns and storage cost. A ratio that is too low risks empty shelves and lost sales. The goal is the lowest ratio that still keeps the assortment complete.

How is it different from inventory turnover?

Turnover is an annual measure (cost of goods sold ÷ average inventory). The stock-to-sales ratio is a monthly planning tool. Twelve divided by an average monthly ratio gives a rough annual turn.

Should I use cost or retail values?

Retail planners usually use retail values for both inventory and sales. Either works as long as both numbers use the same basis.

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This calculator is for educational purposes. Double-check important results before acting on them.