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Inventory Carrying Cost Calculator
Estimate annual and monthly carrying costs from average inventory value and explicit cost assumptions.
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Your inputs
01 / EnterThese are editable examples, not recommended rates. Enter your own numbers.
Your result
02 / UnderstandLoading the example calculation…
Show the math
Estimates use unrounded numbers. Displayed amounts round to cents.
What this means
The model applies a carrying rate to average stock acquisition value, then adds only separately excluded annual expenses.
Worked example
100 units at $10 have $1,000 average inventory value. A user-defined 20% annual rate and $40 of excluded annual expenses give $240/year or $20/month.
How the math works
Average inventory value = average units × acquisition cost/unit. Annual carrying cost = average value × annual rate/100 + separately itemized annual costs. Monthly equivalent = annual cost/12.
About this estimate
Average inventory and costs cover the same year. The selected rate may already include storage, capital, insurance or loss; separately entered costs must not overlap it. Monthly equivalent is an allocation, not a cash-payment forecast.
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Formula v1.0.0 · Reviewed · Tool ID: inventory-carrying-cost