Track stock loss across units, costs, and operations. Spot shortages, overages, and margin exposure fast. Improve inventory accuracy with timely manufacturing loss analysis.
| Metric | Example Value | Notes |
|---|---|---|
| Opening inventory units | 10,000 | Opening stock from prior period |
| Produced units | 2,500 | Units manufactured during the period |
| Received units | 1,200 | Supplier receipts or subcontract returns |
| Sold or issued units | 3,200 | Units shipped to customers or production lines |
| Scrap + damaged + sample units | 275 | Recorded non-saleable usage |
| Physical count units | 10,110 | Observed count from stocktake |
| Unit cost | 18.75 | Standard or weighted average cost |
| Unit selling price | 29.50 | Retail or transfer valuation basis |
Expected inventory units = Opening units + Produced units + Received units + Returns units + Transfers in − Sold units − Scrap units − Damaged units − Sample units − Transfers out + Recorded adjustments.
Shrinkage units = Expected inventory units − Physical count units.
Shrinkage rate = Shrinkage units ÷ Expected inventory units × 100.
Cost loss = Shrinkage units × Unit cost.
Retail value loss = Shrinkage units × Unit selling price.
Net shrinkage loss = Cost loss − Salvage recovery.
Annualized net loss = Net shrinkage loss × (365 ÷ Period days).
Inventory accuracy = [1 − |Shrinkage units| ÷ |Expected inventory units|] × 100.
Enter your opening stock, production, receipts, returns, and transfers in. Add all outbound movements, including sales, scrap, damage, samples, and transfers out.
Type the physical count from your latest stocktake. Then enter unit cost, selling price, recoverable salvage, the period length, and annual revenue.
Press the calculate button to view shrinkage units, rates, net loss, annualized impact, and inventory accuracy. Use the CSV or PDF buttons to export the results.
Inventory shrinkage is the difference between recorded stock and physical stock. It usually comes from theft, counting errors, damage, process loss, scrap misreporting, or system timing issues.
A negative shrinkage result means the physical count exceeds expected inventory. This overage often points to data entry errors, late receipts, duplicate issues, or unrecorded returns.
Use the inventory valuation basis your business reports internally. That may be standard cost, weighted average cost, or another approved costing method used in manufacturing accounting.
Yes. If scrap and damage were already recorded in the system, include them as outbound movements. That helps separate known operational loss from unexplained shrinkage.
Annualized loss estimates what the current shrinkage trend could equal over a full year. It is useful for budgeting, audit discussions, and process improvement planning.
They answer different questions. Cost loss reflects direct inventory value. Retail value loss shows missed sales value. Reviewing both gives stronger operational and financial insight.
Most manufacturers review shrinkage monthly, after cycle counts, and after full stocktakes. High-risk product lines may need weekly review with tighter count controls.
Yes. It highlights the size of unexplained differences, their financial effect, and the trend over time. That supports better root-cause analysis and corrective action.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.