Absorption Rate Calculator

Work out absorption rate instantly with clear inputs, formula shown and shareable results.

About Absorption Rate Calculator

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.

Formulas

Absorption rate

Monthly rate = units sold per month / inventory available

Months of supply

Supply = inventory / units sold per month

Worked example

With the default values below, Absorption Rate Calculator returns Monthly absorption rate of 3.333%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Units sold in the periodminimum 0: 48
Period lengthminimum 0.5 months: 6 months
Units available for saleminimum 1: 240

Results

Monthly absorption rate: 3.333% %
Units absorbed per month: 8.00
Months of supply: 30.0 months
Annualised absorption: 40.00% %

Step by step

1Values used
2Absorption rate
3Months of supply
4Monthly absorption rate= 3.333 %
5Units absorbed per month= 8.00
6Months of supply= 30.0 months
7Annualised absorption= 40.00 %

Assumptions and limits

The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is the Absorption Rate figure worked out?

Monthly rate = units sold per month / inventory available. Absorption rate is the share of available inventory sold per month.

Which is the better market signal?

Months of supply, because it is directly comparable across markets of any size and is the metric planning authorities and lenders quote.

What values do I need to enter?

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.