Calculator
Inventory Carrying Cost Calculator
Estimate the annual cost of carrying your inventory at a given carrying-cost rate.
Last updated July 2026
What it measures
Inventory carrying cost is the total annual cost of holding stock — capital, storage, insurance, shrinkage, and obsolescence — expressed as a percentage of inventory value. It typically runs 20–30% per year.
Formula
Carrying Cost % = (Capital + Storage + Service + Risk costs) ÷ Average Inventory Value Basis: Institute for Supply Management (via NetSuite), Industrial Supply Magazine
Estimates are directional and for planning only; they don't constitute financial advice.
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