This tool helps you quickly calculate the total value of your inventory based on item quantities and prices.

## How to Use the Inventory Calculator

This inventory calculator helps you compute the total value of items in stock by considering various parameters. Below is how you should use it:

- Enter the cost of a single item in the “Item Cost” field.
- Enter the quantity of items in stock in the “Quantity in Stock” field.
- Specify the tax rate (in percentage) in the “Tax Rate” field.
- Specify the discount rate (in percentage) in the “Discount Rate” field.
- Enter any overhead costs that need to be considered in the “Overhead Costs” field.
- Click the “Calculate” button to compute the result.

## Explanation of Calculation

The calculator follows these steps to compute the final inventory value:

- Multiplies the item cost by the quantity to get the total value of items in stock before applying tax and discount.
- Calculates the discount amount on the total value.
- Calculates the tax amount on the discounted price.
- Adds the overhead costs to the total.
- The final value is displayed in the result field.

## Limitations

Please note the following limitations of this calculator:

- All inputs should be numeric. Invalid inputs will trigger an alert.
- The calculator assumes all inputs are provided in the same currency.
- Results are displayed with a precision of 2 decimal points.

## Use Cases for This Calculator

### Calculating Total Inventory Value

To calculate the total value of your inventory, enter the quantity and price of each item. The calculator will multiply the quantity by the price and sum up these values to give you the total inventory value.

### Determining Profit Margin

To determine the profit margin on your inventory items, enter their cost price and selling price. The calculator will subtract the cost price from the selling price, divide the result by the selling price, and give you the profit margin percentage.

### Calculating Turnover Rate

To find the turnover rate of your inventory, input the cost of goods sold and average inventory value. The calculator will divide the cost of goods sold by the average inventory value to provide you with the turnover rate.

### Estimating Reorder Point

Estimate the reorder point by entering the lead time demand, safety stock, and average daily sales. The calculator will multiply the lead time demand by the safety stock, plus the average daily sales, to determine the reorder point.

### Calculating Carrying Cost

To calculate the carrying cost of inventory, input the average inventory value and the carrying cost percentage. The calculator will multiply the average inventory value by the carrying cost percentage to give you the carrying cost.

### Estimating Economic Order Quantity (EOQ)

Determine the Economic Order Quantity by entering the annual demand, ordering cost, and holding cost. The calculator will compute the square root of [(2 x Annual Demand x Ordering Cost) / Holding Cost] to provide you with the EOQ.

### Calculating Days Sales of Inventory (DSI)

To calculate the Days Sales of Inventory, enter the average inventory value and the cost of goods sold. The calculator will divide the average inventory value by the cost of goods sold and then multiply the result by 365 to determine DSI.

### Estimating Stock-to-Sales Ratio

Estimate the Stock-to-Sales Ratio by entering the average inventory value and the net sales. The calculator will divide the average inventory value by the net sales to provide you with the stock-to-sales ratio.

### Calculating Inventory Shrinkage Rate

To determine the inventory shrinkage rate, input the value of lost inventory and the original inventory value. The calculator will subtract the lost inventory value from the original inventory value and divide the result by the original inventory value to give you the shrinkage rate.

### Estimating Inventory Days Coverage

Estimate the Inventory Days Coverage by entering the average inventory value and the cost of goods sold. The calculator will divide the average inventory value by the cost of goods sold and then multiply the result by 365 to determine the inventory days coverage.