Inventory Carrying Cost What does a year of stock cost?
Enter your average inventory value, annual storage, cost of capital and risk rate: the yearly cost of holding stock, the carrying rate, the monthly figure and, if you like, the cost per unit — on one screen.
Free — no signup needed
Last updated:
$6,600
Example yearly carrying cost
26.4%
Carrying rate
$550
Per month
🏷️Inventory Carrying CostOVERVIEW
Yearly carrying cost$6,600
Carrying rate26.4%
Per month$550
Seller Niche
The problem
The storage fee is only half of it.
Beyond warehouse rent, stock carries the interest on the money tied up and the risk of shrink and obsolescence; leave it out of unit cost and profit looks higher than it is.
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Cost of capital
Money in stock means interest or a lost return.
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Storage
Amazon monthly storage + your own warehouse/3PL.
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Risk
Shrink, obsolescence, damage and insurance.
How it works?
1️⃣
Enter inventory value
The average, at cost.
2️⃣
Enter storage
Twelve months of storage spend.
3️⃣
Enter the rates
Cost of capital and risk percentage.