Inventory Shrinkage Rate Calculator: Measure Stock Loss Accurately
Use the calculator by entering recorded and actual inventory values; it instantly returns the shrinkage rate and percentage. For example, $50 000 recorded and $49 000 actual equals a 2 % loss. Retailers worldwide lose roughly 1.4 % of sales to shrinkage (NRF, 2022).
Inventory Shrinkage Rate Calculator
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How to use the tool
Recorded Inventory: Type the book value of stock before count. Example 1: 50 000 Example 2: 30 000
Actual Inventory: Enter the value after a physical count. Example 1: 49 000 Example 2: 28 500
Press “Calculate”: The tool returns both decimal and percentage shrinkage.
GAAP requires disclosure when shrinkage materially affects cost of goods sold (FASB ASC 330).
ISO 9001:2015 urges “measurement and evaluation of non-conforming output,” including shrinkage (ISO 9001, 2015).
FAQ
What is the inventory shrinkage rate?
The shrinkage rate shows the share of stock value lost through theft, damage, or errors before sale (NRF, 2022).
How does the calculator work?
It subtracts actual inventory from recorded, divides by recorded, and displays the result as a decimal and percentage—no data leaves your browser.
What is an acceptable shrinkage percentage?
Retail analysts flag anything above 3 %; top performers keep it under 1 % (Deloitte Retail Benchmark, 2023).
Why does inventory shrink?
Primary causes are external theft (37 %), employee theft (28 %), and administrative mistakes (25 %) (NRF, 2022).
How often should I measure shrinkage?
Quarterly counts suit most retailers; high-risk sectors run monthly cycles for faster intervention (KPMG Retail Outlook, 2023).
How can I reduce shrinkage?
Combine CCTV, employee training, RFID tracking, and regular audits; integrated programs cut losses by up to 50 % (ECR Retail Loss Group, 2021).
Does shrinkage impact taxes?
Yes. U.S. businesses can deduct verified shrinkage as cost of goods sold under IRS Publication 334, lowering taxable income.
Can the tool process negative or zero inputs?
No. The form blocks negative or zero numbers because shrinkage requires positive recorded inventory and non-negative actual values.
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