01
Enter dead stock units, cost, and age
How many units, what you paid for each, and how many months they have been sitting unsold. The calculator shows the capital tied up and carrying cost already incurred.
Dead Stock Calculator
Quantify dead stock costs and decide: liquidate, discount, or hold.
Updated Reviewed by Sajid Hussain· Editor
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Last updated
June 9, 2026
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9 markets · 8 currencies
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Stop holding stock that is costing you money
Dead stock calculator — liquidate, discount, or hold?
Dead stock is inventory that has stopped selling and is unlikely to clear at the original price. Every month it sits unsold, it costs you carrying charges — storage, insurance, capital opportunity cost — while tying up cash that could be working in faster-moving products. This calculator quantifies the true cost of your non-moving inventory and runs a break-even analysis to help you decide whether to discount and sell through, liquidate in bulk, or hold and wait.
Most sellers know dead stock is a problem but rarely quantify it. The monthly carrying cost metric makes the ongoing expense tangible: a 2% monthly carrying rate on 2,500 in dead stock value is 50 every single month. After 12 months that is 600 spent keeping stock that earns nothing — money that has already eroded your return.
The discount scenario answers: can you still make a profit if you mark it down? If a 50% discount still produces a positive margin, discounting is almost always the right move — you recover capital, free warehouse space, and avoid future carrying costs. The calculator shows exactly what the discounted profit is.
The liquidation scenario answers: when does taking a certain loss today beat paying ongoing carrying cost? If the liquidation loss would be recovered by just 6 months of saved carrying cost, liquidating now is better than holding. The break-even months output gives you this number directly.
The hold option makes sense when the liquidation loss is large and carrying cost is low — for example, very expensive specialty inventory with low storage requirements. But this must be a deliberate, calculated choice, not an avoidance of the decision.
Quick facts
- Dead stock value
- Capital frozen in non-moving inventory
- Monthly carrying cost
- What it costs every month to hold it
- Three recovery scenarios
- Discount, liquidate, or hold — modelled
- Break-even analysis
- Months until carrying cost outweighs liquidation loss
- Recommended action
- Data-driven decision: discount, liquidate, or hold
- Global
- Works in any currency, any product category
How it works
Enter your dead stock position, get a clear recommendation
Three groups of inputs — what you have, how you could price it, and your cost rates — then the calculator recommends the optimal action.
02
Set the original selling price and clearance discount
The calculator computes whether a discounted sale still generates a profit — if yes, discounting is almost always the recommended option.
03
Set liquidation recovery and carrying cost rates
Liquidation recovery is what a bulk buyer will pay as a percentage of cost. Monthly carrying rate is your ongoing holding expense. Together they drive the break-even analysis.
04
Read the recommendation
The calculator recommends liquidate, discount, or hold — and shows the financial case behind the recommendation, including break-even months and profit at clearance.
Steps to use the Dead Stock Calculator: Enter dead stock units, cost, and age, Set the original selling price and clearance discount, Set liquidation recovery and carrying cost rates, Read the recommendation.
Formula
How the dead stock analysis works
Three scenarios modelled in parallel — the recommendation comes from comparing outcomes.
01
Dead stock value and monthly cost
Dead Stock Value = Dead Units × Cost Per Unit | Monthly Cost = Dead Stock Value × Monthly Carrying Rate ÷ 100
How much capital is frozen and how much it costs per month to keep it frozen. Total incurred = monthly cost × months stagnant.
Example: 100 units × 25 = 2,500 in value. 2,500 × 2% = 50/month ongoing cost.
02
Discount scenario
Discounted Price = Selling Price × (1 − Discount ÷ 100) | Discounted Profit = (Dead Units × Discounted Price) − Dead Stock Value
Models selling all units at the clearance discount. If profit > 0, discounting recovers capital and earns margin — almost always worth doing vs holding.
Example: 50 × (1 − 50%) = 25 discounted price. 100 × 25 = 2,500 revenue − 2,500 cost = 0 break-even.
03
Liquidation scenario
Liquidation Recovery = Dead Stock Value × Liquidation % ÷ 100 | Liquidation Loss = Dead Stock Value − Recovery
Models a bulk liquidation sale. You almost always take a loss, but you immediately recover cash and stop future carrying costs.
Example: 2,500 × 30% = 750 recovery. Loss = 2,500 − 750 = 1,750.
04
Break-even: liquidation vs holding
Break-even Months = Liquidation Loss ÷ Monthly Carrying Cost
How many months of saved carrying cost it takes to offset the liquidation loss. If this is ≤ 6 months, liquidation is recommended over holding.
Example: 1,750 loss ÷ 50/month = 35 months — holding is better (too long to break even).
Worked example
100 units dead, 25 cost per unit, 6 months stagnant
See the full dead stock analysis — discount, liquidation, and break-even — step by step.
Scenario
$100.00 units have been sitting unsold for $6.00 months. They cost $25.00 each and originally sold for $50.00. Monthly carrying rate is $2.00%. Liquidation recovers $30.00% of cost. A $50.00% clearance discount is possible.
1
Step 1 · Dead stock value and monthly cost
$100.00 × $25.00 = 2500 frozen in inventory. Monthly carrying cost: 2500 × $2.00% = 50/month. Total incurred: 50 × $6.00 months = 300.
2500 at cost · 50/month ongoing
2
Step 2 · Discount scenario
Clearance price: $50.00 × (1 − $50.00%) = 25. Revenue: $100.00 × 25 = 2500. Profit = 2500 − 2500 = 0 (break-even, not profitable).
Discount profit: 0 (break-even only)
3
Step 3 · Liquidation scenario
Liquidation recovery: 2500 × $30.00% = 750. Loss: 2500 − 750 = 1750.
Liquidation loss: 1750
4
Step 4 · Break-even months
1750 loss ÷ 50/month = 35 months to recover via saved carrying cost → too long, better to hold.
Recommendation: Hold
The takeaway
With a 35-month break-even on liquidation and a discount that only breaks even (no profit), holding is the recommended action — the liquidation loss is simply too large relative to the monthly carrying cost. However, the seller should set a 3-month review: if carrying cost incurred climbs above 25% of stock value without a sales improvement, liquidation becomes the better choice.
Industry benchmarks
Dead stock levels and liquidation recovery by category
Reference data for what percentage of inventory typically becomes dead stock and what liquidation recovery rates to expect by category.
| Metric | Poor | Average | Good | Excellent |
|---|---|---|---|---|
Dead stock as % of total inventory — retail NRF Retail Inventory Shrinkage Survey 2024 | > 20% | 10–20% | 5–10% | < 5% |
Liquidation recovery — general merchandise Liquidity Services Reverse Logistics Report 2024 | < 15% | 15–30% | 30–50% | > 50% (branded, in-demand) |
Liquidation recovery — electronics IronPlanet / Ritchie Bros Market Data 2024 | < 20% | 20–40% | 40–60% | > 60% (new in box) |
Liquidation recovery — fashion / apparel ThredUp Resale Report 2024 | < 10% | 10–25% | 25–40% | > 40% (current season) |
Monthly carrying rate (self-warehouse) APICS Operations Management Body of Knowledge 2024 | > 3.5%/mo | 2–3.5%/mo | 1.5–2%/mo | < 1.5%/mo |
Why this calculator
Calcrux vs spreadsheets vs Wholesale Clearance tools
Most sellers approach dead stock by gut feel — a markdown here, a liquidation batch there, with no financial analysis. Paid inventory tools rarely include dead stock break-even analysis. This calculator gives you the full picture for free.
| Feature | Calcrux | Spreadsheet | Paid inventory tool |
|---|---|---|---|
| Dead stock value calculation | Manual | Sometimes | |
| Monthly carrying cost ongoing | Manual | Sometimes | |
| Total carrying cost incurred | Manual | ||
| Discount scenario profit/loss | Manual | Sometimes | |
| Liquidation recovery modelling | Manual | ||
| Break-even months analysis | |||
| Liquidate / discount / hold decision | |||
| Works without connected data | |||
| Free, no subscription | |||
| Works in any currency | Usually |
Common mistakes
Where dead stock decisions go wrong
Not identifying dead stock until it is written off
Why it matters
Sellers often only discover dead stock at year-end when accounting forces a write-off. By then, carrying costs have compounded for months or years, making the total loss much larger than an earlier intervention would have been.
Fix
Run a monthly coverage report and flag any SKU with zero or near-zero sales in the past 60+ days. Catching dead stock at 2 months is far cheaper than catching it at 18 months.
Waiting too long to discount, hoping the market recovers
Why it matters
Every month of hope costs carrying charges. More importantly, fashion, seasonal, and trend-driven products lose value over time — a product worth 50% of cost today may only recover 20% in six months.
Fix
Set a time limit: if a product has not moved in 60 days, run the dead stock analysis. If discounting produces a profit, clear it. If not, use the break-even analysis to decide between liquidation and holding.
Confusing gross recovery with net recovery in liquidation
Why it matters
A liquidator quoting 35% of cost sounds reasonable until you add up their handling fee, their transportation cost, and the time you spend managing the process. Net recovery is often 10–15% lower than quoted.
Fix
Always net out transaction costs from the liquidation recovery rate. If the liquidator quotes 35% and you estimate 10% in logistics and admin, use 25% as your effective recovery rate.
Treating a zero-profit discount as a reason not to discount
Why it matters
A break-even discount (zero discounted profit) still clears the dead stock, frees capital, frees warehouse space, and stops future carrying cost. A zero-margin sale today is better than paying 50/month in carrying cost forever.
Fix
A break-even discount is almost always worth taking unless the product is expected to sell at full price very soon. Zero profit today + capital freed > zero profit today + carrying cost forever.
Using monthly carrying rate of 0% when calculating dead stock cost
Why it matters
Setting carrying rate to 0 makes dead stock look "free" to hold. It ignores storage fees, insurance, and most critically, the capital opportunity cost — the return you give up by keeping money in unsold inventory.
Fix
Use a realistic monthly carrying rate. If you are unsure, 2% per month (24% annually) is a reasonable starting point for ecommerce. Use the Inventory Carrying Cost Calculator for a precise rate.
Donating or disposing of dead stock without checking the tax implications
Why it matters
In many jurisdictions, donating inventory to charity or writing it off as a loss has tax deductibility rules. Disposal may also have regulatory requirements for certain product categories.
Fix
Before donating, destroying, or writing off dead stock, check with your accountant. In the US, qualified charitable donations of inventory can be deducted at cost — worth more than a fire-sale liquidation.
Tips
Turning dead stock into recovered capital
Analyze dead stock monthly
A monthly 60-day no-sales report catches dead stock early, when recovery rates are higher and carrying cost has not yet compounded significantly.
Bundle with fast movers
Pairing a dead product with a popular one (buy X, get Y free or discounted) clears dead stock without a public price slash. This preserves perceived value while accelerating movement.
Flash-sale before 180 days
Amazon charges escalating storage fees for inventory over 180 and 365 days. A flash sale or Lightning Deal run before the 180-day mark saves not just carrying cost but avoids Amazon's long-term storage surcharge.
Try alternative channels first
eBay, Facebook Marketplace, Poshmark, or your own clearance section may recover 50–70% of cost — significantly more than a liquidator's 20–30%. Liquidation is the last resort, not the first move.
Calculate donation vs liquidation
In the US, donating qualifying inventory to a 501(c)(3) charity can generate a tax deduction of up to twice the cost basis (for C-corps). The effective after-tax recovery can exceed a typical liquidation deal.
Set a holding-period rule
A policy rule — "any SKU with no sales in 90 days gets analysed; any in 180 days gets actioned" — removes emotion from dead stock decisions and forces earlier, cheaper resolutions.
Use cases
When sellers use the dead stock calculator
The Dead Stock Calculator works across every stage of the workflow.
Seasonal Brand / Merchandise Manager
A fashion brand uses the calculator at the end of each season to decide which leftover units to discount, which to bundle, and which (if any) to liquidate, based on the expected recovery vs ongoing carrying cost.
Product Manager / Brand Owner
A new product that failed to gain traction has 300 units sitting unsold after 90 days. The seller runs the analysis to determine whether a 60% discount clears them profitably or whether liquidation makes more financial sense.
Amazon FBA Seller
A seller checks their FBA inventory report for units approaching the 180-day threshold and uses the dead stock calculator to quantify the cost of the upcoming long-term storage fee vs a discount or removal now.
Ecommerce Operations Director
A business with 200 SKUs uses the dead stock analysis to identify and clear the bottom 20 by coverage days, freeing both warehouse space and capital for the top performers.
Ecommerce CFO / Finance Lead
A CFO uses the calculator to document the total value of dead stock, the carrying cost incurred to date, and the expected recovery under the chosen action plan for an investor review.
Head of Procurement / Ops
A seller uses the break-even months output as a negotiating tool: "the liquidator's offer of 20% is below my 6-month break-even — I can hold for 6 more months before liquidating at a worse number becomes rational."
Glossary
Dead stock terms explained
Every important term you'll encounter in this calculator and the broader topic.
- Dead stock
- Inventory that has stopped selling and is unlikely to clear at the original selling price. Also called dead inventory, obsolete stock, or non-moving stock.
- Carrying cost (holding cost)
- The ongoing expense of keeping inventory — storage, insurance, capital opportunity cost, and handling. Measured as a monthly or annual percentage of inventory value.
- Liquidation
- Selling inventory in bulk to a liquidator or reseller at a fraction of the cost price. Typically recovers 15–40% of cost — almost always a loss, but frees capital immediately.
- Liquidation recovery rate
- The percentage of cost price recoverable through a bulk liquidation sale. Typical range: 20–40% for general merchandise.
- Clearance discount
- A percentage reduction off the original selling price to stimulate sales of slow-moving or dead stock. The discount scenario shows whether the reduced price still covers cost.
- Break-even months
- How many months of saved carrying cost (from liquidating now) it takes to offset the liquidation loss. Under 6 months generally favours liquidation over holding.
- Opportunity cost of capital
- The return the capital frozen in dead stock could earn if deployed elsewhere — in marketing, faster-moving products, or savings. Part of the annual carrying cost.
- Write-off
- Formally recognising inventory as worthless or nearly worthless in accounting — removing it from the balance sheet and booking the loss. Typically done when disposal or liquidation is confirmed.
- Total incurred carrying cost
- The total carrying expense already spent holding the dead stock from purchase to today. Calculated as monthly carrying cost × months stagnant. A sunk cost — but important context for the decision.
Help & answers
Frequently asked questions
Everything you need to know about how the Dead Stock Calculator works.
01What is dead stock?
Dead stock (also called dead inventory or non-moving stock) is inventory that has stopped selling and is unlikely to clear at the original price. It ties up capital, consumes carrying costs, and takes up warehouse space that could be used for faster-moving products.
02How do you calculate the cost of dead stock?
Dead stock value = units × cost per unit. Monthly carrying cost = dead stock value × monthly carrying rate. Total cost incurred = monthly cost × months stagnant. For example: 100 units × 25 cost per unit = 2,500 in value. 2,500 × 2% monthly rate = 50/month, 300 incurred after 6 months.
03When should I liquidate dead stock vs try to sell it at a discount?
Discount if you can still make a profit — discounted revenue > cost is the test. If discounting is not profitable, compare the liquidation loss against future monthly carrying costs: if the carrying cost catches up to the liquidation loss within 6 months (break-even ≤ 6), liquidate. If not, holding may be rational while you try other clearance options.
04What is a realistic liquidation recovery rate?
For most general merchandise, expect 20–40% of cost from a liquidator. Electronics can recover 40–60% if new in box. Fashion recovers 10–25% depending on seasonality. Always net out transaction and logistics costs — effective recovery is typically 10–15% lower than the gross quote.
05What is the break-even months in dead stock analysis?
Break-even months = liquidation loss ÷ monthly carrying cost. It tells you how many months of future carrying cost you would save by liquidating now, compared to the certain loss from liquidating. If break-even is 6 months or less, liquidation is usually the better financial decision.
06How does a clearance discount compare to liquidation for dead stock?
Clearance discounting is almost always preferable to liquidation when it generates a profit — even a small one. You recover more capital, clear the stock at retail or near-retail channels, and avoid the deep losses typical of bulk liquidation (often 60–80% of cost). The calculator models both scenarios so you can compare directly.
07What is a monthly carrying cost rate for dead stock?
A typical monthly carrying cost rate for ecommerce is 1.5–3% of inventory value per month (18–36% annually). This covers storage, insurance, shrinkage, and opportunity cost of capital. Use 2% as a starting estimate if you are unsure, or calculate your exact rate with the Inventory Carrying Cost Calculator.
08Can I avoid dead stock by improving my inventory forecasting?
Yes — most dead stock results from overordering, incorrect demand forecasting, or misjudging trend cycles. Better demand forecasting (using growth rates and seasonal factors), smaller order quantities, and more frequent reorders all reduce the risk of accumulating dead stock.
09What happens to dead stock on Amazon FBA?
Amazon charges escalating long-term storage fees for inventory held more than 180 days and more than 365 days. On top of your regular monthly storage fees, these surcharges significantly increase carrying cost. Use the dead stock calculator to decide whether to discount, remove, or liquidate before the 180-day threshold.
10Is donating dead stock better than liquidating it?
In many cases, yes — especially for US C-corps and S-corps. Qualifying inventory donations to 501(c)(3) charities can be deducted at cost (up to 2× cost for C-corps). The after-tax benefit often exceeds liquidation recovery, particularly for inventory in low-demand categories where liquidators offer very low percentages.
11How often should I review my inventory for dead stock?
Monthly. Run a 60-day zero-sales report and analyze any SKU that has not sold in 60+ days. Catching dead stock at 2 months costs far less in accumulated carrying charges than catching it at 12 months — and recovery options (discount, alternate channels, donation) are better when the inventory is still relatively current.
12Does this dead stock calculator work for any product category?
Yes. The calculator is category-agnostic — you enter the relevant rates for your product (liquidation recovery %, monthly carrying rate, discount %) and it models the financial outcomes. The benchmarks section provides typical rates by category as a starting reference.
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Ecommerce Seller Operations
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inventory operations
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Global · 9 markets
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Topics
dead stock calculatordead inventory calculatornon moving inventory costliquidate dead stockhow to deal with dead stockdead stock ecommercedead inventory analysisslow moving stock calculatorinventory write off calculatordead stock valueclearance pricing calculatorobsolete inventory calculator
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