Inventory Shrinkage Calculator
Measure stock lost to theft, damage and error as a share of sales, the standard shrinkage metric.
About Inventory Shrinkage Calculator
The shrinkage rate is the share of total sales at cost that value of stock unaccounted for represents, expressed as a percentage. The same figure is also shown per 1,000 and as a "one in every N" odds statement, which is easier to reason about when the rate is very small. Absolute counts hide scale — a rate normalises the number so you can compare periods, channels or cohorts of different sizes, where lower is better.
Formula
Inventory Shrinkage
Shrinkage Rate = Value of stock unaccounted for ÷ Total sales at cost × 100
- Value of stock unaccounted for
- The subset being measured
- Total sales at cost
- The full population it is drawn from
Worked example
With the default values below, Inventory Shrinkage Calculator returns Shrinkage Rate of 1.50%. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Value of stock unaccounted forminimum 0
- 9,000
- Total sales at costminimum 0
- 600,000
Results
- Shrinkage Rate
- 1.50%
- Remaining (whole minus part)
- 591,000
- Equivalent per 1,000
- 15.0
- One in Every
- 66.7
Step by step
- 1Values used
- 2Inventory Shrinkage
- 3Shrinkage Rate= 1.50
- 4Remaining (whole minus part)= 591,000
- 5Equivalent per 1,000= 15.0
- 6One in Every= 66.7
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or compounding frequency 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 Inventory Shrinkage calculated?
Shrinkage Rate = Value of stock unaccounted for ÷ Total sales at cost × 100 The shrinkage rate is the share of total sales at cost that value of stock unaccounted for represents, expressed as a percentage. The same figure is also shown per 1,000 and as a "one in every N" odds statement, which is easier to reason about when the rate is very small.
Why does Inventory Shrinkage matter?
Absolute counts hide scale — a rate normalises the number so you can compare periods, channels or cohorts of different sizes, where lower is better.
What values do I need to enter?
This calculator takes 2 inputs: Value of stock unaccounted for, Total sales at 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.