Inventory & operations

Inventory Shrinkage Calculator

Compare book inventory with a physical count using consistent cost values.

No sign-upBrowser-only calculationsFormula & methodology
01

Your numbers

Use one currency and the same reporting period. Sample values are filled in to help you start.

currency
currency

Your numbers stay in this browser.

02

Example result

Inventory difference2,000in your chosen currency
Shrinkage rate
4%

A negative result is an inventory overage. Investigate timing and valuation before attributing a difference to loss.

Understand the result

How to calculate it

Shrinkage = book value − physical value; rate = shrinkage ÷ book value × 100

A negative result is an inventory overage. Investigate timing and valuation before attributing a difference to loss.

Worked example

This is an illustrative scenario, not a market benchmark. Select “Reset to example” to reproduce it in the calculator.

Book inventory value at cost
50,000 currency units
Physical inventory value at cost
48,000 currency units

Inventory difference: 2,000

Common questions

Inventory Shrinkage FAQ

Does shrinkage always mean theft?

No. Damage, recording errors, miscounts and timing differences can all contribute.

What does this calculation leave out?

A negative result is an inventory overage. Investigate timing and valuation before attributing a difference to loss.

Are my inputs saved or sent to a server?

Calculations run in your browser. We do not send your inputs or results to our server or analytics. A comparison stays in this tab until it is refreshed. A CSV is saved only when you choose to download it. See our privacy policy for ordinary hosting and optional analytics data.

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