True cost of slow-moving and dead inventory — including liquidation breakeven.
Inputs
If sold at MSRP
At current velocity
Cost so far
Total carrying cost (to date)—
Storage to date
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Opp cost to date
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Cost as % of value
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Future scenarios
Strategy
Cost / Loss
Recovered
Net
Liquidation breakeven
About this calculator
Dead stock is the silent killer of DTC margin. It doesn\'t show up as a P&L line item — it sits on the balance sheet labeled "inventory," giving the illusion of asset value while quietly costing 25-50% of its value per year in carrying costs. Most operators don\'t track aging inventory explicitly until they discover six-figure write-offs at year-end.
This calculator quantifies three costs: cumulative storage fees (paid to your warehouse or 3PL), cumulative opportunity cost (what the working capital would have earned if redeployed), and the projection of those costs over the time it would take to naturally sell through. The math usually argues for liquidation earlier than operators want to accept.
The tough decision is liquidation discount sizing. A 50% off sale recovers half of retail revenue but signals brand discount tolerance to future customers. A 70% off liquidation channel sale (TJ Maxx, Tuesday Morning) keeps the cheap goods out of your direct customer\'s view but recovers less. Donation often beats both because it preserves pricing power AND provides a tax write-off at full cost basis.
Prevention beats cure. Pair with the Reorder Point Calculator and the Inventory Turnover Rate tool to identify slow-moving SKUs early. The pattern: 80% of dead stock comes from 20% of SKUs that should never have been ordered in the volumes they were ordered in.
Frequently asked questions
What counts as "dead stock"?
Inventory that hasn't sold in 90+ days at current velocity. Some operators define it more strictly (180+ days). The threshold matters less than tracking it explicitly — most warehouse systems don't flag aging inventory until it's already a problem.
What's the real cost of holding dead stock?
Three buckets. Storage fees ($0.20-1 per unit per month for FBA, similar for 3PLs). Opportunity cost (12-15% annual on tied-up working capital). Obsolescence risk — apparel and seasonal goods lose value over time. Total annual cost is typically 25-50% of inventory value.
What discount makes liquidation worth it?
When the discount × remaining inventory < the carrying cost over time-to-natural-sell. For a SKU that would take 18 months to clear at full price but cost 30% of value to hold for that period, a 30% discount to clear in 30 days is breakeven. Anything steeper (50%+ off) is dilutive but recovers cash.
Should I just write off dead stock?
Last resort. Try in order: liquidation sale (50-70% off, clear in 30-60 days), wholesale to discount channels (Tuesday Morning, Marshalls, etc., for 25-40% of retail), donation (tax write-off at cost basis), then write-off. Donation often beats heavy discount because it preserves brand pricing.
How do I prevent dead stock?
Better demand forecasting (avoid over-ordering on unproven SKUs), shorter MOQ supplier relationships (lower commitment), and aggressive testing of new products before committing to large quantities. The Reorder Point calculator and Inventory Turnover Rate help diagnose where it accumulates.