What the result shows
The largest discount the whole stock lot can take today while keeping the target profit, plus the month when storage removes that room.
Dead Stock Inventory Cost Calculator
Find how far you can discount slow stock today and when storage costs use up the profit you wanted to keep.
Compare holding stock with discounting it
Enter one slow-moving stock lot. Use its current total retail value, what you paid for it, and the monthly cost to keep it.
Largest discount that keeps target profit
45.0%
You can reduce the lot’s current retail value by up to $22,500 today. At the entered storage cost, that room is gone in 15.0 months.
- Discount room across the stock lot
- $22,500
- Profit you want to keep
- $5,500
- Storage uses up that room by
- Calculate to see the calendar date
Choose when to turn slow stock back into cash.
How it is calculated
Divide inventory cost by one minus the target margin to find the minimum sale value. Compare that value with current retail value, then reduce the available room by storage cost each month.
How to use it
Compare the available discount with the markdown needed to sell the stock. Acting sooner may release cash and preserve more profit before storage costs reduce both.
What this result leaves out
This assumes the whole stock lot can sell at the entered retail value before discount. Payment fees, tax, spoilage, disposal costs, and changes in demand are not included.
Before you use the result
Is a 20% margin the same as a 20% markup?
Margin is profit divided by selling price. Markup is profit divided by cost. A product that costs $80 needs a $100 selling price for a 20% margin. Adding a 20% markup would price it at $96 and leave a lower margin.
Can I use the full discount shown for a clearance sale?
The discount is a ceiling under the entered costs, not a recommended markdown. Allow for selling fees, extra shipping, disposal, and any other clearance costs. Start with the smallest markdown likely to move the stock.
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