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Working Capital in Stock

Inventory Carrying Cost Calculator

Inventory is the cheapest place to hide a planning problem. Enter your average stock and its carrying rate — cost of goods sold is optional, for turns and days on hand — and see what holding that stock costs you every year.

Calculator

Tell us about your stock:

₹

Raw material, WIP and finished goods at cost, averaged over the year.

10%24%35%

Capital cost, storage, handling, insurance and obsolescence as a share of stock value.

₹

From the P&L, at cost — not sales value. Optional — powers the turns and days-on-hand figures below.

Discrete manufacturers with stable demand run 30–45 days of inventory. Above 90 days, planning is being done with stock instead of information.

Your stock is costing you to hold every year

₹44.4 L

Monthly carrying cost:₹3.7 LAbove lean

The figures behind it:

Inventory turns

4.97×

Days of inventory on hand

73.4 days

Want to know more?

Enter your work email if you would like a Gemba consultant to review these figures with you.

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