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Supply Chain

Inventory Carrying Cost Calculator

Calculate the total annual cost of holding inventory by combining storage, insurance, opportunity cost, and obsolescence rates against your average inventory value. Use this to justify reorder points, EOQ models, or warehouse space decisions.

Fill in the required fields to see your result.
Supply Chain

Inventory Carrying Cost Calculator

Calculate the annual cost of holding inventory by multiplying average inventory value by a carrying cost rate. Carrying costs typically run 20-30% of inventory value annually and are one of the largest hidden expenses in supply chain operations.

Fill in the required fields to see your result.

Key differences

Inventory Carrying Cost CalculatorInventory Carrying Cost Calculator
CategorySupply ChainSupply Chain
Inputs required52
ResultAnnual Carrying Cost ($)Annual Carrying Cost ($)
What it doesCalculate the total annual cost of holding inventory by combining storage, insurance, opportunity cost, and obsolescence rates against your average inventory value. Use this to justify reorder points, EOQ models, or warehouse space decisions.Calculate the annual cost of holding inventory by multiplying average inventory value by a carrying cost rate. Carrying costs typically run 20-30% of inventory value annually and are one of the largest hidden expenses in supply chain operations.