Inventory Carrying Cost Calculator

Business & Operations

Use the Inventory Carrying-Cost and Dead-Stock Calculator

Quantify annual and monthly inventory carrying cost, effective carrying rate, and item-level dead-stock recovery and loss exposure.

Policy-aware Accessible PDF and Excel

Effective carrying-rate visibility
Item-level dead-stock recovery
Annual cost and loss exposure

Before you calculate

Use an average inventory balance from the general ledger or stock valuation and reconcile each dead-stock row to an item ledger. Recovery values should reflect realistic clearance, return, recycling, or scrap proceeds.

What this calculator covers

Inputs you can model

Currency
Average inventory value
Cost of capital %
Storage and handling %
Insurance and inventory-tax %
Shrinkage and obsolescence %
Annual fixed carrying costs
Dead-stock items

Results you can review

Total annual cost and exposure
Total annual carrying cost
Monthly carrying cost
Effective carrying rate
Variable carrying rate
Annual variable carrying cost
Dead-stock book value
Expected dead-stock recovery
Dead-stock disposal costs
Dead-stock loss exposure

Method, policy basis, and limitations

How the estimate is built

Variable carrying rates are applied to average inventory, fixed costs are added separately, and dead-stock exposure equals book value less expected recovery plus disposal cost.

Important limitation

This is a management estimate, not an inventory impairment entry. Accounting policy, net realizable value, tax treatment, hazardous disposal, write-off approvals, and actual sale proceeds require separate review.

Your inputs

Enter the values you know. Required fields should be completed first, and optional fields can be left blank if they do not apply to your situation.

Preparing your input checklist Visible required fields are checked as you complete them.

Inventory carrying-cost base

Use average inventory at landed or accounting cost for the same annual period as the cost rates.

Currency Required

Average inventory value Required Accepted range: 0 to 1,000,000,000,000.

Cost of capital % Required Accepted range: 0 to 100.

Storage and handling % Required Accepted range: 0 to 100.

Insurance and inventory-tax % Required Accepted range: 0 to 100.

Shrinkage and obsolescence % Required Accepted range: 0 to 100.

Annual fixed carrying costs Required Accepted range: 0 to 100,000,000,000.

Dead-stock exposure

Estimate recoveries conservatively and include direct disposal or compliance costs.

Dead-stock items Structured input Add confirmed obsolete, expired, or non-moving items. Recovery percentage is the expected proceeds as a share of book value.

Calculating and validating policy inputs...

Your decision view will appear here

Run the calculator to see the planning signal, key measures, reconciliation detail, and any schedules or stress scenarios returned for these inputs.

Your results

The top cards show the most important answers first. Detailed schedules, scenario tables, and supporting notes appear underneath for deeper review.

Planning estimate

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