Inventory Decision Tools
Inventory Carrying Cost Calculator Online Free
Calculate the annual cost of capital, storage, insurance, obsolescence and handling tied up in inventory.
Compare inventory carrying cost by category
Use different storage and obsolescence assumptions for fast-moving, slow-moving or other inventory groups instead of applying one rate to everything.
| Category | Average inventory | Capital % | Storage % | Insurance/tax % | Obsolescence % | Handling % | Total rate | Annual cost | Saving vs target | |
|---|---|---|---|---|---|---|---|---|---|---|
| 22.5% | ₹3,37,500.00 | ₹67,500.00 | ||||||||
| 33.5% | ₹3,35,000.00 | ₹1,55,000.00 |
Average inventory
₹25,00,000.00
Weighted carrying rate
26.9%
Annual carrying cost
₹6,72,500.00
Potential saving vs target
₹2,22,500.00
Working-capital decision
Weighted carrying cost is approximately ₹6,72,500.00 per year, equal to 26.9% of average inventory value.
Recommended next actions
- ✓ Prioritise categories with high obsolescence and storage rates.
- ✓ Review slow-moving stock before applying broad inventory reductions.
- ✓ Validate finance and warehousing rate assumptions at least annually.
What this tool solves
This practical procurement tool turns operating assumptions into a clear business decision, highlights constraints and provides next actions rather than only returning a formula.
Common use cases
- ✓ Procurement and supplier review
- ✓ Warehouse and inventory planning
- ✓ Retail, restaurant and manufacturing operations
- ✓ Spreadsheet or ERP policy validation
How to use it
- Enter current operating and supplier assumptions.
- Review the KPI dashboard and constraint warning.
- Compare the recommendation with policy and real operational limits.
- Export or print the result for review and approval.
Important assumptions
- • Use consistent units and time periods.
- • Verify supplier quotations and historical performance before approval.
- • Recalculate when demand or commercial terms change.
Continue your inventory workflow
Frequently asked questions
Does this tool store my data?
No. The calculation runs locally in your browser and does not require an account.
Can I use the result as an automatic purchasing decision?
Use it as decision support. Confirm source data, supplier terms, open orders, demand risk and internal approval rules before acting.
How often should I review the inputs?
Review them whenever demand, prices, lead times, service targets, storage limits or supplier terms change materially.