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Inventory turnover
Measure inventory turns and average days in inventory.
PerformancePERFORMANCE
Inventory Shrinkage Value & Rate Calculator
Compare expected book inventory value with physical-count value at the same cost basis and cut-off.
Inventory shrinkage calculator
Compare expected book inventory value with physical-count value at the same cost basis and cut-off.
YOUR RESULT LIVE CALCULATION
Inventory shortage rate
2.5% of expected value
BOOK-TO-COUNT SHORTFALL- Shortage value
- $2,500
- Overage value
- $0
- Counted minus expected value
- -$2,500
- Expected / counted value
- $100,000 / $97,500
Same cost basis and cut-off. A variance requires reconciliation; it does not identify a loss cause.
BEHIND THE NUMBER
How the calculation works
Expected value should already reflect authorized receipts, shipments, transfers, and adjustments through the count cut-off. Value the physical count at the same unit costs. A shortfall is reported separately from an overage, and the signed net variance remains visible. An overage is not converted into negative shrinkage.
Net value variance = counted - expected; shortage = max(expected - counted, 0); shortage rate = shortage / expected x 100
When this calculation helps
Reconcile an expected stock balance and a verified physical count on a consistent cost and period basis. Separate a quantity discrepancy from its monetary valuation.
Check the interpretation
Timing, wrong locations, unit conversions, and unposted movements can resemble shrinkage. Investigate the source records before classifying a difference as theft, damage, or an accounting loss. A net figure can also conceal offsetting discrepancies across SKUs.
A book-to-count difference is not proof of theft or a specific loss cause. Timing, unit-of-measure, valuation, and recording errors need reconciliation. Net values can hide offsetting record errors; use record accuracy for count-match performance.
Good to know
What denominator does the rate use?
This tool divides the shortfall by expected book inventory value. Sales-based retail shrink rates use a different denominator and are not directly comparable.
What happens when physical value exceeds book value?
The tool shows an overage, a positive counted-minus-book variance, and zero shortage. Investigate rather than treating the overage as income or negative shrinkage automatically.