Inventory Shrinkage Calculator
Measure stock lost to theft, damage and errors — and see what it costs you yearly. Enter your book inventory, the physical count and sales; the tool computes the shrinkage rate, annualizes the loss and benchmarks it against typical retail ranges.
Shrinkage amount
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Shrinkage rate
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Estimated yearly loss
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Details
How to use
- Enter beginning inventory, purchases during the period, and what your records show at the end.
- Enter the actual physically counted inventory and your sales for the same period.
- Select the period length to annualize the loss, and your gross margin to see how much extra sales you need to recover the lost profit.
Note: Shrinkage = recorded inventory minus physically counted inventory. This is an estimate — book records must be accurate for the rate to be meaningful.
Tips
- Count high-value items weekly and everything else monthly — shrinkage hides in slow-moving stock.
- Fix receiving and billing errors first; they are often the biggest source of "shrinkage".
- A rate above 2% of sales usually means theft or serious process problems — act fast.