FREE INVENTORY ANALYSIS TOOL
Dead Stock Calculator
Quantify inactive inventory, identify slow-moving and potential dead stock, and see how much working capital is tied up in underperforming SKUs.
- Free to use
- No sign-up required
- Built for real inventory decisions
Calculator
Results
CalculatedPotential Dead Stock Value$11,000
3 SKUs representing approximately 41.4% of the analyzed inventory value meet your current potential dead-stock threshold.
Decision metrics
Decision Insight
3 SKUs meet the current potential dead-stock threshold, representing about $11,000 of inventory value. Including slow-moving items, approximately $16,400 of inventory value is currently flagged for review. Review the highest-value flagged SKUs first before making disposal, markdown, transfer, or purchasing decisions.
Inventory Risk Summary
SKU count and inventory value by inactivity status.
Dead Stock Analysis
Flagged SKUs appear first, ranked by status and inventory value.
Key Takeaways
- Potential dead stock is inventory that has remained inactive beyond the threshold you define.
- Inventory value helps prioritize inactive SKUs by the amount of capital tied up.
- Slow-moving inventory is an early warning and does not automatically mean an item should be discontinued.
- Review seasonality, future demand, supplier constraints, and strategic importance before taking action.
How It Works
The tool combines current inventory, unit cost, recent sales velocity, and days since last sale to identify inventory that may require review.
It calculates inventory value and recent sales velocity for each SKU, then compares inactivity with your slow-moving and potential dead-stock thresholds.
SKUs are grouped as Active, Slow Moving, Potential Dead Stock, or No On-Hand Stock, then flagged SKUs are prioritized by inventory value.
Formula
Formula 1
Inventory ValueCurrent Stock × Unit CostFormula 2
Daily Sales VelocityUnits Sold in Recent Window ÷ Recent Sales WindowFormula 3
Days of SupplyCurrent Stock ÷ Daily Sales Velocity (when velocity is above 0)Formula 4
Potential Dead Stock ValueSum of Inventory Value for Potential Dead Stock SKUsFormula 5
Potential Dead Stock SharePotential Dead Stock Value ÷ Total Inventory Value × 100Formula 6
At-Risk Inventory ValueSlow-Moving Value + Potential Dead Stock ValueWhere:
- Recent Sales Window: the number of recent days used to calculate sales velocity.
- Slow-Moving Threshold: the inactivity point at which inventory is flagged for review.
- Potential Dead Stock Threshold: the inactivity point at which on-hand inventory is classified as Potential Dead Stock.
- Potential Dead Stock: a screening classification based on your thresholds, not an automatic disposal recommendation.
Example Calculation
Let’s say:
- SKU-D: 150 units × $40 = $6,000; 0 units sold in the last 90 days; 220 days since last sale
- SKU-C: 200 units × $15 = $3,000; 12 units sold in the last 90 days; 110 days since last sale
- SKU-A: 120 units × $20 = $2,400; 2 days since last sale
With the default example data, 3 SKUs are Potential Dead Stock with $11,000 of inventory value, or 41.4% of total analyzed inventory value.
How to Use the Result
- Review the highest-value potential dead-stock SKUs first.
- Check whether inactivity is caused by seasonality, temporary demand changes, or data quality before taking action.
- Consider pausing replenishment for inactive items before adding more inventory.
- Evaluate transfers, bundles, markdowns, supplier returns, or liquidation only when appropriate for the business.
- Use Slow Moving status as an early warning for further inventory review.
- Combine the results with Inventory Aging, ABC Analysis, Overstock Cost, and SKU Rationalization before major assortment decisions.
Limitations
- There is no universal number of inactive days that defines dead stock for every business.
- Seasonal, spare-part, strategic, or low-frequency items may remain inactive for long periods while still being necessary.
- Days since last sale depends on accurate transaction data.
- Recent sales velocity may not represent future demand.
- The tool does not automatically account for future orders, promotions, seasonality, supplier constraints, or strategic importance.
- Inventory value is based on the entered unit cost and does not represent expected recovery value.
- Potential Dead Stock is a screening classification, not an automatic disposal recommendation.
- Days of Supply is unavailable when no recent sales are recorded.
Frequently Asked Questions
What is dead stock?
Dead stock is inventory that has remained inactive for a long enough period that a business decides it needs review. The exact definition varies by business and product type.
How long before inventory is considered dead stock?
There is no universal threshold. Use a threshold that fits the item’s seasonality, demand pattern, lead time, and strategic role.
What is the difference between dead stock and slow-moving inventory?
Slow-moving inventory is an early warning that an item is selling slowly or has been inactive for a shorter period. Potential Dead Stock has exceeded the longer inactivity threshold you set.
How do you calculate dead stock value?
Multiply current stock by unit cost for each flagged SKU, then add the resulting inventory values.
What causes dead stock?
Common causes include demand changes, over-ordering, forecasting errors, product changes, inaccurate data, and unplanned assortment complexity.
How can I reduce dead stock?
Review inactive inventory regularly, pause replenishment where appropriate, investigate causes, and consider transfers, bundles, markdowns, returns, or liquidation only when suitable.
Should all dead stock be liquidated?
No. Check seasonality, future demand, strategic importance, supplier constraints, and data quality before taking action.
How does seasonality affect dead stock analysis?
Seasonal items may remain inactive for long periods and still be needed. Use thresholds that reflect the sales cycle and review the result in context.
What is the difference between dead stock and excess inventory?
Dead stock focuses on inactivity. Excess inventory can still be selling but exceed what is needed for expected demand.
How does dead stock affect working capital?
Inactive inventory ties up money that could otherwise support purchasing, operations, debt reduction, or other investments.
How often should I review dead stock?
Review it on a regular cadence that fits your sales cycle, and after material demand, assortment, or inventory changes.
Can a low-volume SKU still be strategically important?
Yes. Spare parts, critical service items, and strategic products may be low-volume but still necessary.