How to use this calculator
- Enter average inventory value, annual carrying-cost rate (%).
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
This is a linear planning estimate; actual storage tariffs, seasonality and obsolescence can differ.
Worked example
With average inventory value = 50000, annual carrying-cost rate (%) = 20, annual carrying cost is approximately 10000.
What the result means
The rate should represent storage, capital cost, insurance and expected losses without double counting.
Common questions
How should I interpret annual carrying cost?
The rate should represent storage, capital cost, insurance and expected losses without double counting.
What should I check before using this result?
This is a linear planning estimate; actual storage tariffs, seasonality and obsolescence can differ.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.