How to Calculate Inventory Holding Cost or Carrying Cost
Ship Monk
SEPTEMBER 19, 2022
Before you can calculate carrying cost, you’ll need to calculate the following numbers: Opportunity Cost: This is the amount of capital (cash) you have tied up in unsold inventory that could have been invested elsewhere (on more profitable products, for example). Easily track metrics such as inventory turnover or cost per unit.
Let's personalize your content