Inventory Carrying Cost Calculator
How much does holding inventory actually cost?
Your numbers
Result
Annual carrying cost
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How this is calculated
Calculate the true cost of carrying inventory including storage, capital, insurance, and obsolescence. Many sellers underestimate these hidden costs.
- Total carrying cost rate = storage + capital + insurance + obsolescence
- Annual carrying cost = inventory value x total rate
What to make of the number
Typical carrying costs are 20-30% of inventory value annually. Amazon FBA storage adds 10-15% on top.
Frequently asked questions
What is the biggest inventory cost?
Capital tie-up and storage fees are usually the largest costs.