MarginKoala

What does it cost to hold unsold stock?

Enter your numbers below. Get the answer first, then Koala's next move.

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Numbers to enter
Build carrying cost from the costs your inventory actually creates. MarginKoala does not assume a universal 15%, 20% or 30% carrying rate.
$

Use the average inventory value for the same 12-month period as the annual costs below.

%

Your own financing/opportunity-cost rate for money committed to inventory. Leave 0 if you do not want to include a capital charge.

$

Only the annual warehouse/storage/handling cost attributable to holding inventory.

$

Use costs that genuinely arise from holding stock. Leave 0 if not applicable.

$

Write-offs, damage, expiry, theft and obsolete stock attributable to the period.

$

Optional. Include only costs not already counted above.

Use the average number of units on hand if you want a carrying-cost-per-unit figure.

Koala's Calculated Result
Annual carrying cost derived from the cost components you entered.

Add average inventory value, then the annual carrying-cost components that apply to your business.

MarginKoalaKoala's Professional Opinion

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Frequently asked questions

What is inventory carrying cost?

There is no universal numeric benchmark for this decision. The right comparison depends on the industry, geography, business model, time period and exact metric definition. Use the business’s own history, economics and explicit target unless a verified benchmark matching that scope is available.

Inventory Carrying Cost

What goes into the carrying rate?

Storage (warehouse or shelf-share), insurance, shrinkage and damage, depreciation/obsolescence, and the opportunity cost of capital — the lending or reinvestment rate you could earn if the cash were not in stock.

Inventory Carrying Cost

How do I size the per-unit cost?

Per-unit carrying cost = total annual carrying ÷ units. The figure lets you set a per-sale margin cushion — anything below it loses money on a coverage basis even before discounting.

Inventory Carrying Cost

What if I forget to include opportunity cost?

Use the calculator result for the inputs entered and keep any market-response or operating recommendation separate from the deterministic calculation. Support that additional assumption with the business’s own evidence or an explicitly labelled scenario.

Inventory Carrying Cost

Educational use, not financial advice. Numbers are estimates for planning; consult a qualified professional before acting on them.