Dead Stock Cost
Value the money tied up in unsold inventory.
About Dead Stock Cost
Dead stock is valued at what the money would have been spent on, and its annual carrying cost shows the ongoing drain of keeping it unsold. Obsolete stock quietly consumes working capital every month, so its total cost justifies aggressive discounting to clear it.
Formula
Dead Stock Cost
Dead stock value = unsold units x unit cost; carrying = value x carrying%
- carrying cost
- Storage, insurance and opportunity cost of inventory
Worked example
With the default values below, Dead Stock Cost returns Capital Tied Up of $2,400.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Unsold unitsminimum 0
- 320
- Cost per unitminimum 0
- 7.5
- Annual carrying costaccepts 0–100 %
- 20 %
Results
- Capital Tied Up
- $2,400.00
- Annual Carrying Cost
- $480.00
Step by step
- 1Values used
- 2Dead Stock Cost
- 3Capital Tied Up= 2,400.00
- 4Annual Carrying Cost= 480.00
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 or tax into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
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 Dead Stock Cost calculated?
Dead stock value = unsold units x unit cost; carrying = value x carrying% Dead stock is valued at what the money would have been spent on, and its annual carrying cost shows the ongoing drain of keeping it unsold.
Why does Dead Stock Cost matter?
Obsolete stock quietly consumes working capital every month, so its total cost justifies aggressive discounting to clear it.
What values do I need to enter?
This calculator takes 3 inputs: Unsold units, Cost per unit, Annual carrying cost. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.