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Calcimator

Inventory Aging Calculator

Analyze aging inventory and determine optimal markdown strategy based on sell-through rate, holding costs, and target turnover.

Inputs

$
$

Results

Suggested Markdown

67.5%

Markdown Price

$26.00

≈ 5 cups of coffee

Current Perceived Value$60.80
Projected Weeks to Sell22.3 weeks
Total Holding Cost$11.15
How to Use This Calculator
  1. Enter Original Retail Price and Current Age (weeks) for the inventory being evaluated.
  2. Set Current Sell-Through Rate (%) — how quickly the item is selling versus initial projections.
  3. Enter Holding Cost per Week — carrying cost including storage, capital, and opportunity cost.
  4. Set Target Sell-Through Rate (%) to define when markdown action is triggered.
  5. Read Suggested Markdown (%), Markdown Price, Projected Weeks to Sell, and Total Holding Cost to decide on promotional action.

How the result changes with Target Sell-Through Rate

Target Sell-Through RateSuggested MarkdownMarkdown Price
55%30%$56.00
68%49.5%$40.40
83%72%$22.40
95%80%$16.00

What each input means

Original Retail Price
Original full retail price of the item.
Current Age (weeks)
How many weeks the inventory has been on the sales floor.
Current Sell-Through Rate
Percentage of original inventory that has been sold so far.
Holding Cost per Week
Weekly cost to hold one unit (storage, opportunity cost, insurance).
Target Sell-Through Rate
Desired sell-through percentage for the season.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Original Retail Price = 80, Current Age (weeks) = 12, Current Sell-Through Rate = 35, Holding Cost per Week = 0.5 = 5 input(s) provided
  2. Calculate Suggested Markdown
    Suggested Markdown
    67.5 = 67.5
  3. Calculate Markdown Price
    Markdown Price
    26 = $26
  4. Calculate Current Perceived Value
    Current Perceived Value
    60.8 = $60.8
  5. Calculate Projected Weeks to Sell
    Projected Weeks to Sell = min(999
    22.3 = 22.3

Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.

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