About the Inventory Holding Cost Calculator
Annual inventory carrying cost from storage, capital, insurance, shrinkage and obsolescence rates.
Also known as: carrying cost, inventory carrying cost, cost of holding stock.
How to use this calculator
- Enter average inventory value, cost of capital, storage & handling, shrinkage, damage & obsolescence and the other fields.
- The result updates instantly as you type — press Calculate (or Enter) at any time.
- Review the breakdown shown under the main result.
- Use Copy result or Share to save the answer or send a link with your inputs.
Formula
Holding cost = inventory value × carrying rate
Worked example
Using the values pre-filled in the calculator above:
- Average inventory value = 250,000
- Cost of capital = 8 %
- Storage & handling = 6 %
- Shrinkage, damage & obsolescence = 3 %
- Insurance & tax = 1.5 %
the calculator returns:
- Annual holding cost: 46,250
- Carrying cost rate: 18.5%
- Monthly: 3,854.17