Calculator Inputs
Example Data Table
| Scenario | Billing Method | Units | Days | Inbound | Outbound | Shared Overhead | Seasonal Multiplier |
|---|---|---|---|---|---|---|---|
| Standard DTC inventory | Per Pallet Per Day | 120 pallets | 30 | 18 receipts | 95 orders | $2,040 monthly, 72% occupancy | 1.08 |
| Bulky seasonal goods | Per Cubic Foot Per Day | 4,800 cubic feet | 45 | 26 receipts | 140 orders | $2,350 monthly, 84% occupancy | 1.15 |
| Floor-based overflow zone | Per Square Foot Per Month | 2,200 square feet | 60 | 12 receipts | 60 orders | $1,980 monthly, 68% occupancy | 0.96 |
Formula Used
Base storage cost = chargeable units × selected storage rate × storage period.
Adjusted storage cost = base storage cost × seasonal multiplier.
Handling cost = (inbound receipts × inbound fee) + (outbound orders × outbound fee).
Allocated overhead = monthly overhead total × storage months × occupancy ratio.
Shrinkage cost = inventory value × monthly shrinkage rate × storage months.
Total warehouse storage cost = adjusted storage cost + handling cost + allocated overhead + shrinkage cost + admin fee.
How to Use This Calculator
- Select the billing method your warehouse partner uses.
- Enter the matching storage quantity, such as pallets, cubic feet, or floor area.
- Add the storage duration and your warehouse rate.
- Include inbound receipts, outbound orders, and handling fees.
- Enter recurring overhead costs, inventory value, shrinkage, occupancy, and admin fee.
- Click the calculate button to show results above the form.
- Review the cost breakdown graph and projection table.
- Use the CSV or PDF buttons to save the results.
Frequently Asked Questions
1. What does this calculator estimate?
It estimates warehouse storage expense for ecommerce inventory. The calculation includes storage pricing, handling, shared overhead, shrinkage, seasonal effects, and fixed admin charges.
2. Which billing method should I choose?
Choose the method that matches your contract. Use pallet pricing for racked goods, cubic pricing for volume-based billing, and square-foot pricing for floor-based storage agreements.
3. Why is occupancy included?
Occupancy helps allocate a fair share of utilities, labor, insurance, security, and software. Higher utilization often drives a larger portion of shared warehouse overhead.
4. What is the seasonal multiplier?
It adjusts base storage pricing for peak or off-peak periods. A value above 1 increases storage cost, while a value below 1 reduces it.
5. How is shrinkage cost treated?
Shrinkage is modeled as a percentage of inventory value per month. This captures expected loss from damage, theft, expiration, or handling errors.
6. Can I use this for third-party logistics pricing?
Yes. It works well for internal budgeting and 3PL comparisons. Enter each provider's rates and assumptions to compare total holding costs consistently.
7. Why do projections change with storage days?
Longer storage periods increase variable storage, overhead allocation, shrinkage exposure, and usually handling assumptions. The projection table helps visualize how costs scale over time.
8. Are taxes and transport included?
No. This page focuses on warehouse holding cost only. Add transportation, packaging, returns, taxes, and fulfillment surcharges separately for a complete landed-cost model.