Work out inventory overhang months instantly with clear inputs, formula shown and shareable results.
Inventory overhang is how many months it would take to clear unsold stock at the current sales rate. Comparing new launches with quarterly sales shows whether the overhang is shrinking or growing: when launches exceed sales the overhang lengthens even if the absolute sales number looks healthy.
Overhang
Months = unsold inventory / monthly sales rate
Net change
Quarterly change = new launches - quarterly sales
Months = unsold inventory / monthly sales rate. Inventory overhang is how many months it would take to clear unsold stock at the current sales rate.
Analysts typically regard eight to twelve months as balanced. Above twenty-four months signals oversupply and usually precedes price discounting.
This calculator takes 3 inputs: Unsold inventory, Sales in the last quarter, New launches per quarter. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.