Ecommerce
Damaged stock costs what you paid for it plus what disposal costs, and the rate tells you where it happens.
The loss
Units written off as unsellable in the period.
Cost of goods per unit, in your local currency.
Disposal and the base
Cost to dispose of or write off each unit.
Total units handled in the period.
Total Damaged Goods Cost
1,040.00
Direct loss plus disposal cost.
Formula verified 13 September 2026
Direct Loss
1,000.00
Damaged units multiplied by unit cost.
Damage Rate
2.00%
Damaged units as a percent of units handled.
Disposal Cost
40.00
Damaged units multiplied by disposal cost.
Estimate only — platform fees and costs vary; verify current rates. Read the full disclaimer ↓
The two cost lines of a write-off for your inputs — the lost goods valued at cost, plus the cost to dispose of them — and the damage rate that normalises the loss against units handled. Items that can be sold at a discount rather than fully written off are not modelled here.
| Component | Calculation | Amount |
|---|---|---|
| Direct loss (goods) | 40 units × 25 cost | 1,000 |
| Disposal | 40 units × 1 | 40 |
| Total damaged goods cost | Direct loss + disposal | 1,040 |
| Damage rate | 40 ÷ 2,000 handled | 2% |
Estimates only — not financial, tax, or professional advice.
100% private — every number you enter is calculated in your browser and never sent to our servers.
What it calculates: Total Damaged Goods Cost, Direct Loss, Damage Rate, Disposal Cost.
Updated 5 June 2026 · Transparent assumptions
The direct loss is what the unit cost you. On top of that, disposal is rarely free — waste collection, recycling compliance, or the labour to sort and remove it all cost money on an item that will never earn any.
Hazardous goods, electronics and anything with packaging regulations can make disposal a significant share of the total, which is why it is a separate input rather than assumed away.
Expressing damage as a share of units handled turns an absolute number into something diagnosable. A rate that is stable month to month is usually a packaging or handling issue; one that spikes points at a specific shipment or a change in process.
Tracking it separately for inbound receipts, warehouse storage and outbound transit is what localises the cause. Each has a different fix, and a blended rate hides which one you have.
Before writing a unit off entirely, the options are an open-box or seconds sale at a discount, breaking it for spare parts, a supplier claim where the damage arrived that way, or a carrier claim where it happened in transit.
Supplier and carrier claims are the most overlooked. Goods damaged before you took possession are frequently recoverable, and the claim window is usually short enough that noticing late means losing the right entirely.
Under-packaging to save on materials is a false economy once the damage rate is priced. A packaging upgrade costing a few units per order pays for itself if it removes even a small share of write-offs on anything of moderate value.
Storage practice matters too. Stack height, humidity, and how often stock is moved and re-picked all drive damage, and none of them appear in a supplier invoice.
Figures on this page are checked against primary, authoritative sources. Links open in a new tab.
Business disclaimer
Results are estimates for planning and analysis based on the figures you enter. They are not accounting, tax, or financial advice — verify with your own records and a qualified professional before making decisions.
How we calculate · Found an error? email us
Published 13 September 2026