Where your dead stock sits as a percentage of total units, with the rough health story each band tells. Lower is better, but the right threshold depends on your margins and product type — read this against your own trend over time, not as a fixed standard.
Dead stock % of inventory
What it typically suggests
Under 5%
Healthy — a small, normal tail of slow movers; keep clearing it before it grows.
5% – 10%
Watch — a noticeable slice of inventory is stagnant; review what is stuck and why.
10% – 20%
Elevated — a meaningful drag on capital and space; act on discounting, bundling, or returns.
◀ your result (10.0%)
Over 20%
Serious — a large share of stock is not selling; aggressive clearance and tighter buying are warranted.
Estimates only — not financial, tax, or professional advice.
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What it calculates: Dead Stock Value, Dead Stock % of Inventory, Annual Storage Cost Wasted.
Updated 5 June 2026 · Transparent assumptions
The purchase price is sunk; the storage cost is not
The money spent buying dead stock is unrecoverable whatever you do next, so it should not influence the decision. What is still live is the storage cost, which continues every month you hold on hoping the stock will move.
This is why the calculator reports monthly storage separately from the stock value. Holding stock that will not sell in order to avoid admitting the loss simply adds a running cost to a loss already taken.
One dead line is bad luck; fifteen percent is a buying problem
The dead stock percentage puts the problem in context. A small share is the ordinary cost of carrying variety — some products always fail. A large share points upstream to how buying decisions are made.
Where the share is high, the fix is in the purchasing process rather than in clearance pricing: smaller initial orders on unproven lines, and a reorder decision gated on actual sell-through.
Discount, bundle, liquidate, donate, dispose
Discounting recovers the most where demand exists at a lower price. Bundling moves dead stock alongside something that does sell and protects the headline price of both. Liquidators pay little but clear volume quickly and free the space.
Donation may carry a tax deduction depending on jurisdiction, and disposal recovers nothing but stops the storage cost. The right choice depends on how much storage is costing you against what each route would return.
Stock does not die suddenly
A line that has not sold in ninety days rarely recovers on its own. Sell-through rate and stock coverage both flag a slowing line months before it qualifies as dead, when a modest discount would still clear it.
Setting a review trigger — any line above a coverage threshold, or below a sell-through threshold — turns this from an annual write-off into a routine decision taken while the options are still cheap.
Sources & References
Figures on this page are checked against primary, authoritative sources. Links open in a new tab.
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.
Published the calculator with its formula, worked example, assumptions, limitations and a bespoke guide, and added an automated formula test suite covering it.
Tested the value of stalled stock, its share of total units, and the monthly storage cost that continues to accrue.
Tested that the dead share never exceeds one hundred percent and that storage cost scales with the units held.
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