Is this calculator specific to Shopify?

The math is ecommerce-specific and works especially well for Shopify stores because it includes the costs Shopify merchants usually need to model: COGS, payment fees, shipping, returns, ad spend, inventory, conversion rate, or repeat purchases depending on the tool.

Should I use gross margin or contribution margin?

Use contribution margin when you are making advertising, discount, or growth decisions. Gross margin is useful, but contribution margin is stricter because it accounts for variable costs like payment fees, fulfillment, shipping, returns, and app costs.

Why does the tool use default values?

Defaults make the calculator useful immediately and show the shape of the result before you enter your own numbers. Replace them with your store's actual numbers before making a final decision.

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Dead Inventory Calculator

Calculate cash tied up in slow-moving inventory, months of cover, carrying cost, and markdown recovery.

Dead inventory calculator

Quantify cash tied up in slow-moving stock and compare carrying cost against a markdown liquidation.

Units on hand

Unit cost

Monthly units sold

Annual carrying cost

Markdown

Inventory value

$10,800

Months of cover

30 mo

Monthly carry cost

$216.00

Markdown cash

$7,020

Cash after one month

$6,804

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About this tool

What this free tool calculates

Use this for products that are not moving. It turns dead stock into a cash and carrying-cost decision.

How to use the result

The calculator estimates inventory value, months of cover, monthly carrying cost, and cash recovered after a markdown.

If carrying cost and months of cover are high, a controlled markdown may be better than letting old stock block cash for new inventory.

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Why the calculator stays input-driven

This free ecommerce tool does not guess demand, scrape competitors, or invent benchmarks. Change the numbers to match your store, then use the result to decide whether a product, campaign, discount, or inventory move is worth doing.

Frequently Asked Questions

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