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Dead Stock Cost Calculator

See how much cash is trapped in unsold inventory — plus the expected recovery and net loss if you discount to move it.

Enter every amount in the same currency. This selector only changes the symbol shown — it does not convert exchange rates.

Dead stock

Cash tied up

$370.00

Possible recovery

$360.00

97% of cash

Expected loss

$10.00

Discounting recovers $360.00 of $370.00 tied up. Net loss $10.00.

A price of ~$9.25 per unit would fully recover cash tied up.

All calculations are estimates based on average platform fees. Real profits may vary depending on category, ads, and shipping.

Free worksheet for your next step

Turn this calculator result into a plan with a matching worksheet, checklist, or printable resource.

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    Handmade Inventory Tracker

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How to use this calculator

  1. Enter your numbers in each field above — the calculator updates instantly as you type, so there's nothing to submit.
  2. Use your real figures when you have them, or sensible estimates while you're planning. If a field doesn't apply, leave it at zero.
  3. Compare the results, then change one input at a time to see how each lever (price, cost, fees, volume) moves the outcome.

Formula

Cash tied up = Unsold × Cost + Storage · Recovery = Unsold × Discount price · Loss = Cash tied up − Recovery

Worked example

40 unsold at $8 cost, $50 storage, $9 discount price.

  1. Cash tied = 40 × 8 + 50 = $370
  2. Recovery = 40 × 9 = $360
  3. Loss = $10

Answer: $370 tied up; discounting recovers $360

How it works

Dead stock has an ongoing cash cost, not a fixed loss. The longer you sit on it, the higher storage adds — usually cheaper to discount aggressively and free the cash than to protect a margin that won't materialize.

How to interpret your results

  • Dollar values are shown per sale, per order, or per item unless a result is explicitly labelled monthly, weekly, or daily.
  • Percentages (margin, ROI, conversion rate) are easier to compare across products and price points than raw dollars — use them when you benchmark.
  • A positive result means you're ahead after the costs and fees you entered. A negative result means the current numbers don't work — change a lever (raise price, cut a cost, lower ad spend) and recalculate.
  • Treat the output as a planning estimate, not a guarantee. Fees, taxes, and conversion rates shift over time — re-run the numbers whenever a key input changes.

Common mistakes

  • Waiting for full-price sales that won't happen.
  • Forgetting storage cost — it accumulates monthly.
  • Discounting below cost without checking recovery math.

Related Guides

Go deeper with plain-English guides on the same topic.

FAQ

When should I discount dead stock?
If sell-through hasn't moved in 60–90 days and storage is meaningful, discount to recover cash. Cash usually beats gross margin.
How is this different from Sell-Through Rate?
Sell-through measures inventory movement. Dead Stock Cost quantifies the money trapped in items that aren't moving.

Why trust this calculator?

This tool uses standard mathematical formulas and commonly accepted calculation methods, shown openly in the Formula section above so you can verify the math yourself. Results are estimates based on the information you enter and do not account for every individual circumstance. For important financial, tax, legal, medical, or business decisions, please double-check with a qualified professional before acting on the numbers.

Keep going

One calculator rarely tells the full story. Pair this one with a related tool below to pressure-test your numbers from a different angle, or browse Selling & Business Calculators for more in the same category.

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