Work out absorption rate instantly with clear inputs, formula shown and shareable results.
Absorption rate is the share of available inventory sold per month. Its reciprocal, months of supply, is the more intuitive figure: under six months indicates a sellers' market, over twelve a buyers' market. Both come from the same two numbers, sales and standing inventory.
Absorption rate
Monthly rate = units sold per month / inventory available
Months of supply
Supply = inventory / units sold per month
Monthly rate = units sold per month / inventory available. Absorption rate is the share of available inventory sold per month.
Months of supply, because it is directly comparable across markets of any size and is the metric planning authorities and lenders quote.
This calculator takes 3 inputs: Units sold in the period, Period length, Units available for sale. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.