Dead Stock Cost Calculator

Dead stock is inventory that has not sold for a long time and is unlikely to sell at full price. It keeps costing money through storage space, insurance, tied-up capital and handling.

Enter the value of the dead stock at cost, your own annual holding cost rate as a percentage of stock value, and how many months the stock has been or will be held. The 25% pre-filled is only an example.

Compare the result with the discount you would need to clear the stock. Often a markdown or bundle costs less than another year of holding.

How the calculation works

Holding cost = stock value × (annual holding cost rate ÷ 100) × (months held ÷ 12).

Example: €20,000 of dead stock at a 25% annual holding rate held for 12 months costs 20,000 × 0.25 × 1 = €5,000 in holding costs.

The figure does not include the write-down if the stock is eventually scrapped or sold below cost. Add that separately when deciding whether to clear the stock.

See also: Carrying cost calculator.