Enter the total number of sales missed due to understocking and the average cost per sale ($) into the Cost of Understocking Calculator. The calculator will evaluate the Cost of Understocking.

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## Cost of Understocking Formula

The following two example problems outline the steps and information needed to calculate the Cost of Understocking.

CUS = SM * ACPS

Variables:

- CUS is the Cost of Understocking ($)
- #SM is the total number of sales missed due to understocking
- ACPS is the average cost per sale ($)

To calculate the cost of understocking, multiply the number of sales missed due to understocking by the average cost per sale.

## How to Calculate Cost of Understocking?

The following steps outline how to calculate the Cost of Understocking.

- First, determine the total number of sales missed due to understocking.
- Next, determine the average cost per sale ($).
- Next, gather the formula from above = CUS = #SM * ACPS.
- Finally, calculate the Cost of Understocking.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

total number of sales missed due to understocking = 500

average cost per sale ($) = 30

CUS = #SM * ACPS** **= ?