Inventory Days on Hand: Formula and Benchmarks

By mise · Updated September 29, 2026

Quick answer: days on hand = average inventory ÷ COGS × days in period (or 365 ÷ turnover). It shows how many days your current stock would last. Restaurants typically hold 4–8 days of food and 2–4 weeks of liquor.

Days on hand turns inventory into time: how long your money sits on the shelf.

Example: average inventory $6,000, monthly COGS $24,000 → 6,000 ÷ 24,000 × 30 = 7.5 days.

Days on hand calculatorAverage inventory ($)COGS for the period ($)Days in period

Days on hand: —

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Keep reading Restaurant inventory turnover: formula and industry average Par level: meaning, formula and calculator Safety Stock Formula: Calculation and Example Dead Stock: Meaning, Cost and What to Do All guides

Frequently asked questions

Days on hand vs turnover?

Two views of the same thing: DOH = days ÷ turnover.

What is a good days on hand for a restaurant?

About a week for food; liquor is often 2–4 weeks.

Is lower always better?

No: too low means stockouts.

How much does mise cost?

A 7-day free trial, then US$33 a month per location (£26 in the UK).