HustleMath

Inventory Storage Cost Calculator

Storage isn't free—even at home. Calculate your true per-item carrying cost and know exactly when slow inventory should be liquidated or donated.

Cost per itemOpportunity costAging analysisLiquidation triggers

The Hidden Cost of Inventory

Space has value. Whether rent or home space, storing inventory costs something. Quantify it.
Capital is locked. Money in unsold inventory can't buy new inventory. That's opportunity cost.
Old items decay. Fashion goes out of style. Electronics depreciate. Trends change. Time is margin loss.

Managing Inventory Costs

Track Age Religiously: Use listing dates as inventory age. Set reminders at 30, 60, 90 days. Items past 90 days are often net-negative when you factor in carrying costs and opportunity cost.

FIFO Mindset: First In, First Out. Prioritize selling older inventory. New items can wait—they're depreciating less than items already sitting.

Donation Has Value: Items with zero realistic sale potential still cost you storage. Donate for the tax write-off (fair market value deduction) and free up space.

Optimize markdown timing →Model cash flow →

Common Questions

How do I calculate storage cost per item?

Divide your total monthly storage cost (rent portion, storage unit, or FBA fees) by the number of items stored. A $200/month storage unit holding 500 items = $0.40/item/month. But factor in space efficiency—large items take more "share" of your costs.

What's "opportunity cost" in inventory?

Money tied up in inventory can't be used for new purchases. If you typically earn 30% ROI per flip and have $500 in inventory sitting for 90 days, that's ~$37.50 in "lost" potential profit. This calculator helps quantify that hidden cost.

When should I liquidate slow inventory?

When carrying costs exceed potential profit. If an item costs $0.50/month to store and you've held it 3 months ($1.50 cost), but your margin is only $5, you've lost 30% of profit already. Our liquidation trigger helps you decide.

Should I rent dedicated storage or use home space?

Home space isn't "free"—you're giving up living space, which has value. A 10x10 storage unit ($100-150/mo) often makes sense at 200+ items. Below that, home storage is usually fine if you have the space. Calculate your per-item cost either way.

Related Tools

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Markdown Optimizer

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Cashflow Simulator

Model cash tied up in inventory.

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Profit Calculator

Calculate margins including storage.

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Bulk Analyzer

Analyze lot purchases with storage.

Storage cost calculations are estimates based on your inputs. Opportunity cost assumptions depend on your typical ROI. Liquidation triggers are guidelines—actual decisions depend on item uniqueness, seasonal factors, and market conditions.