Inventory Holding Cost Calculator
Stock has a purchase cost and a cost of keeping it. Enter units, unit cost and your annual holding-cost assumption to see both amounts.
Your calculation
Free toolUse one currency and a consistent tax basis. No currency conversion.
Results include only the costs and assumptions entered.
How to use this calculator
Enter your values in one currency. The result updates as you type. Check the fee and tax assumptions before using it for a pricing decision, then download a PDF if you want a record.
How the result is calculated
Inventory value = units × unit cost. Annual holding cost = inventory value × annual carrying rate. Include storage, insurance and capital costs in your chosen rate without double counting.
Worked example
500 units costing £4 each ties up £2,000. An illustrative 15% annual holding rate costs £300 a year.
What should I include in my costs?
Include the costs that change with the item or order: materials, purchasing, making time, packaging, fulfilment and applicable fees. Allocate wider overhead separately. An omitted cost will make the estimate look better than it should.
Does this calculate my tax liability?
No. Entered tax treatment is an assumption for this calculation. The tool does not determine VAT registration, sales-tax nexus, tax rates by location or business income taxes. Check unusual situations with a qualified adviser.
Can I use USD?
Yes. Choosing US inputs uses dollars without converting amounts. Country-specific presets only apply where explicitly stated. Changing a symbol does not establish a platform fee or tax rule.
Questions about this calculation
Is holding cost the same as buying the stock?
The purchase-cost value is units times unit cost. The holding allowance applies the annual rate entered to that value and represents separate carrying assumptions. Avoid repeating storage already counted elsewhere.
Does a lower unit price justify buying more?
Compare the unit saving with the larger cash commitment, storage and slower-sales scenario. The calculator does not forecast demand or establish a statutory stock valuation.