What is inventory velocity?

It is how fast cash spent on inventory comes back as sales. A 30-day cycle turns your capital about 12 times a year; a 90-day cycle only about 4.

Is this projection realistic?

It assumes every turn sells at the same margin and that all profit is reinvested. Real stores have fees, returns and stock-outs, so treat it as a comparison between speeds, not a forecast.

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Cash-flow velocity simulator

Same margin, different speed. Compare a fast and a slow inventory cycle when every dollar of profit is reinvested.

Cashflow Velocity Simulator

Same margin, different turn speed — see how cycle days compound capital over your horizon.

Starting capital (CAD)

Margin per turn (%)

Fast cycle (days)

Slow cycle (days)

Horizon (months)

Fast · 30d (12.2×/yr)

$75,516.50

12.2 turns in 12 mo

Slow · 90d (4.1×/yr)

$12,359.30

4.1 turns in 12 mo

Velocity gap

$63,157.19

Extra capital from the faster cycle

finalCapital = start × (1 + margin%)^(365/turnDays × months/12). Profit fully reinvested each turn.

Frequently asked questions

What is inventory velocity?: It is how fast cash spent on inventory comes back as sales. A 30-day cycle turns your capital about 12 times a year; a 90-day cycle only about 4.
Is this projection realistic?: It assumes every turn sells at the same margin and that all profit is reinvested. Real stores have fees, returns and stock-outs, so treat it as a comparison between speeds, not a forecast.

Turn these numbers into real inventory

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Cash-flow velocity simulator

Frequently asked questions

Turn these numbers into real inventory

Other free calculators

Cash-flow velocity simulator

Frequently asked questions

Turn these numbers into real inventory

Other free calculators