Consignment Stock Value Calculator

Work out consignment stock value instantly with clear inputs, formula shown and shareable results.

About Consignment Stock Value Calculator

Consignment stock sits on your site but remains the supplier's property until consumed, so you avoid the capital cost and much of the obsolescence risk. The holding cost avoided is the value of the arrangement, and it is usually reflected in a slightly higher unit price.

Formulas

Stock value

Value = Consignment units x Unit cost

Holding cost avoided

Avoided = Stock value x Annual holding cost rate %

Worked example

With the default values below, Consignment Stock Value Calculator returns Consignment stock value on site of $5,208,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Consignment stock units on site: 8,400
Unit cost: 620
Monthly consumption: 2,100
Annual holding cost rate: 20

Results

Consignment stock value on site: $5,208,000.00
Months of cover held: 4.00
Annual holding cost avoided: $1,041,600.00
Monthly drawdown value: $1,302,000.00

Step by step

1Values used
2Stock value
3Holding cost avoided
4Consignment stock value on site= 5,208,000.00
5Months of cover held= 4.00
6Annual holding cost avoided= 1,041,600.00
7Monthly drawdown value= 1,302,000.00

Assumptions and limits

The result is derived only from the 4 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.
Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

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

Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

Frequently Asked Questions

Who bears the risk of damage or loss on site?

Usually you, under the consignment agreement, even though title has not passed. Insurance and stock accuracy obligations should be explicit.

Is consignment always cheaper?

Not if the supplier prices the funding into the unit price at a rate above your cost of capital. Compare the price premium with the holding cost avoided.