{
    "name": "Shrinkage Rate Calculator",
    "url": "https://calculators.geekmidst.com/calculators/shrinkage-rate-calculator",
    "markdown": "https://calculators.geekmidst.com/calculators/shrinkage-rate-calculator.md",
    "category": "Commerce & retail",
    "description": "Calculate inventory shrinkage from book and physical stock values, as a percentage of sales (the usual retail measure) and of book inventory.",
    "summary": "Shrinkage is stock you have recorded but cannot find: book inventory minus the physical count. Retailers usually report it as a percentage of sales for the same period.",
    "also_called": [
        "Inventory shrink calculator",
        "Stock loss calculator"
    ],
    "applies_to": "Worldwide",
    "last_updated": "2026-10-29",
    "computation": "Results are computed in the visitor’s browser on the HTML page. This API describes the calculator; it does not compute results.",
    "inputs": [
        {
            "name": "book_inventory",
            "label": "Book (recorded) inventory",
            "type": "number",
            "default": "250000"
        },
        {
            "name": "physical_inventory",
            "label": "Physical count",
            "type": "number",
            "default": "241000"
        },
        {
            "name": "sales",
            "label": "Net sales for the period",
            "type": "number",
            "default": "600000"
        },
        {
            "name": "currency",
            "label": "Currency",
            "type": "currency",
            "default": "USD"
        }
    ],
    "outputs": [
        {
            "key": "shrink_rate",
            "label": "Shrink as % of sales",
            "format": "percent"
        },
        {
            "key": "shrink_value",
            "label": "Shrinkage value",
            "format": "currency"
        },
        {
            "key": "pct_of_book",
            "label": "Shrink as % of book inventory",
            "format": "percent"
        }
    ],
    "formula": {
        "text": "Shrinkage = Book inventory − Physical count;  Shrink rate = Shrinkage ÷ Net sales × 100",
        "variables": {
            "Book inventory": "what your records say you should have",
            "Physical count": "what the stock count found",
            "Net sales": "sales for the period since the last count"
        }
    },
    "worked_example": {
        "inputs": {
            "book_inventory": "250000",
            "physical_inventory": "241000",
            "sales": "600000",
            "currency": "USD"
        },
        "steps": [
            "Shrinkage = 250,000 − 241,000 = 9,000.",
            "Shrink rate = 9,000 ÷ 600,000 × 100 = 1.5% of sales (3.6% of book inventory)."
        ],
        "result": "A $9,000 gap between book and counted stock on $600,000 of sales is a 1.5% shrink rate."
    },
    "interpretation": "Shrink comes from theft, damage, supplier short-shipping and recording errors. Break it down by department or SKU to find where it happens; a sudden change often points to a process or system issue.",
    "assumptions": [
        "Book and physical values use the same valuation basis.",
        "Sales cover the period since the previous count."
    ],
    "limitations": [
        "A negative result (overage) usually means receiving or recording errors rather than a gain."
    ],
    "rules": null,
    "faqs": [
        {
            "question": "Why measure shrink against sales?",
            "answer": "It is the standard retail convention, so figures are comparable between stores and with industry surveys."
        }
    ],
    "sources": [],
    "related": [
        {
            "name": "Retail Inventory Turnover Calculator",
            "url": "https://calculators.geekmidst.com/calculators/retail-inventory-turnover-calculator"
        },
        {
            "name": "Percentage Calculator",
            "url": "https://calculators.geekmidst.com/calculators/percentage-calculator"
        },
        {
            "name": "Ecommerce Return Rate Calculator",
            "url": "https://calculators.geekmidst.com/calculators/ecommerce-return-rate-calculator"
        }
    ],
    "disclaimer": null,
    "publisher": "GM¹X CalcVerse"
}