Inventory Decision Tools
Inventory Carrying Cost Calculator Online Free
Calculate the annual cost of capital, storage, insurance, obsolescence and handling tied up in inventory.
Measure the true annual cost of holding inventory
Combine capital, storage, insurance, obsolescence and handling rates to expose working-capital cost.
Total carrying rate
26%
Annual carrying cost
₹6,50,000.00
Monthly equivalent
₹54,166.67
Saving vs target
₹2,00,000.00
Capital
₹3,00,000.00
Storage
₹1,50,000.00
Insurance / tax
₹37,500.00
Obsolescence
₹1,00,000.00
Handling
₹62,500.00
Working-capital decision
Inventory carrying cost is approximately ₹6,50,000.00 per year, equal to 26% of average inventory value.
Recommended next actions
- ✓ Prioritise slow-moving and obsolete stock for reduction.
- ✓ Use smaller, more frequent orders where freight and supplier terms allow.
- ✓ Review the carrying-rate assumptions with finance at least annually.
What this tool solves
This practical procurement tool turns operating assumptions into a clear business decision, highlights constraints and provides next actions rather than only returning a formula.
Common use cases
- ✓ Procurement and supplier review
- ✓ Warehouse and inventory planning
- ✓ Retail, restaurant and manufacturing operations
- ✓ Spreadsheet or ERP policy validation
How to use it
- Enter current operating and supplier assumptions.
- Review the KPI dashboard and constraint warning.
- Compare the recommendation with policy and real operational limits.
- Export or print the result for review and approval.
Important assumptions
- • Use consistent units and time periods.
- • Verify supplier quotations and historical performance before approval.
- • Recalculate when demand or commercial terms change.
Continue your inventory workflow
Frequently asked questions
Does this tool store my data?
No. The calculation runs locally in your browser and does not require an account.
Can I use the result as an automatic purchasing decision?
Use it as decision support. Confirm source data, supplier terms, open orders, demand risk and internal approval rules before acting.
How often should I review the inputs?
Review them whenever demand, prices, lead times, service targets, storage limits or supplier terms change materially.