Enter the booked inventory, physical counted inventory, and the total sales into the calculator to determine the the inventory shrinkage percent.

Inventory Shrinkage Percent Formula

The following equation is used to calculate the Inventory Shrinkage Percent.

IS% = (BI – PCI) / TS * 100

  • Where IS% is the inventory shrinkage percentage (%)
  • BI is the booked inventory
  • PCI is the physical counted inventory
  • TS is the total number of sales

To calculate the inventory shrinkage percentage, subtract the physical counted inventory from the booked inventory, divide by the total sales quantity, then multiply by 100.

What is Inventory Shrinkage Percent?

Definition:

An inventory shrinkage percentage is the ratio or percent of inventory missing from a warehouse compared to the amount of booked items in accounting. In other words, an inventory shrinkage occurs when a business has fewer items in inventory than expected due to clerical, lost, or stolen goods.

How to Calculate Inventory Shrinkage Percent?

Example Problem:

The following example outlines the steps and information needed to calculate Inventory Shrinkage Percent.

First, determine the booked inventory. In this example, the booked inventory is calculated to be 500.

Next, determine the physical counted inventory. This is measured to be 450.

Next, determine the total sales. The total sales is calculated to be 510.

Finally, calculate the inventory shrinkage percentage using the formula above:

IS% = (BI – PCI) / TS * 100

IS% = (500- 450 )/ 510 * 100

IS% = 9.803 %