Free inventory cost tool
Inventory Carrying Cost Calculator
Estimate the annual cost of keeping unsold inventory on hand, then see how much cash and expense could be released by reducing inventory levels.
Simple calculator
Updates liveBuild the carrying-cost rate
Inventory base
Annual carrying-cost components
Reduction scenario
Carrying costTotal carrying rate = capital + storage + insurance/taxes + shrinkage + obsolescence + handling/admin. Annual carrying cost = average inventory value × total carrying rate.
Advanced calculator
Turnover + savingsModel inventory cost and efficiency
Inventory & throughput
Capital & warehouse
Inventory risk
Inventory improvement target
Advanced carrying costVariable carrying costs are applied to average inventory value. Warehouse, handling and admin are entered as annual fixed costs. Inventory turnover and days on hand are calculated from annual COGS.
Cost composition
Current average inventoryAnnual carrying-cost breakdown
| Cost component | Rate / basis | Annual cost | Share of carrying cost |
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Inventory reduction sensitivity
Fixed warehouse/admin costs held constantCash and annual savings at lower inventory levels
| Inventory reduction | New average inventory | Cash released | New annual carrying cost | Annual savings | Signal |
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Inventory-days sensitivity
COGS and cost rates held constantCarrying cost at different days on hand
| Inventory days | Average inventory value | Inventory turnover | Annual carrying cost | Savings vs current | Cash released |
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