Free tool

Inventory holding cost calculator

See what it really costs to keep your stock on the shelf — capital, storage, handling, insurance and shrinkage, and obsolescence — as a rate and an annual amount.

% / yr

Your borrowing rate, or the return you'd otherwise earn.

% / yr

Rent, power and racking for stock space ÷ average stock value.

% / yr
% / yr
% / yr

Value written off last year ÷ average stock value.

RESULT
Holding cost rate
25.0% a year
Monthly holding cost
10,417
Annual holding cost
125,000

Amounts are in the same currency as the inventory value you enter.

How it works

  • Holding cost rate = capital % + storage % + handling % + insurance and shrinkage % + obsolescence %.
  • Annual holding cost = average inventory value × holding cost rate.
  • Per-unit holding cost = unit cost × holding cost rate — the H in the EOQ formula.

StashBill does this automatically for every item and invoice. See all features or try the other free tools.

Frequently asked

Holding cost (or carrying cost) is the total cost of keeping unsold inventory over a period, usually a year: money tied up, space, handling, insurance, losses, and the risk it expires or goes out of date.

Coming soon to Android, iOS, Windows & macOS

StashBill is in final development. It will be free forever for one device — no card required.