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Calcimator

Inventory Shrinkage Calculator

Calculate inventory shrinkage rate, cost, and recovery revenue needed.

Inputs

$
$
$
%

Results

Shrinkage Rate

2.5%

Shrinkage Value$2,500.00
Shrinkage as % of Revenue0.5%
Lost Profit$1,000.00
Revenue to Recover Loss$6,250.00
Shrinkage Per SKU$5.00
vs Industry Avg (1.62%)0.88 pp
Annual Shrinkage Cost$30,000.00
How to Use This Calculator
  1. Enter the value of inventory at the beginning of the period.
  2. Input total purchases made during the period.
  3. Enter the value of inventory at the end of the period from a physical count.
  4. Input your total sales at cost (cost of goods sold).
  5. Review the Shrinkage Amount and Shrinkage Rate percentage - industry average is 1.4% or less.

What each input means

Book Inventory Value
Inventory value per accounting records.
Physical Inventory Value
Inventory value per physical count.
Annual Revenue
Total annual sales revenue.
Gross Margin
Gross profit margin percentage.
Number of SKUs
Total number of SKUs for per-SKU analysis.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Book Inventory Value = 100000, Physical Inventory Value = 97500, Annual Revenue = 500000, Gross Margin = 40 = 5 input(s) provided
  2. Calculate Shrinkage Rate
    Shrinkage Rate
    2.5 = 2.5
  3. Calculate Shrinkage Value
    Shrinkage Value
    2500 = $2,500
  4. Calculate Shrinkage as % of Revenue
    Shrinkage as % of Revenue
    0.5 = 0.5

Engine last updated . Checked against 1 independently-derived test — how we verify calculators.

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