Retail Shrinkage Loss Calculator
Shrinkage silently eats into retail profits. Enter your recorded inventory value, actual counted value, and revenue to see your shrinkage rate, dollar loss, and its impact on your bottom line.
Shrinkage Rate
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Dollar Loss from Shrinkage—
Shrinkage as % of Revenue—
Annual Net Profit—
Extra Revenue Needed to Offset Loss—
About this calculator
Calculate inventory shrinkage rate and dollar loss from theft, damage, and errors based on recorded vs. actual stock.
Frequently Asked Questions
What is considered a normal shrinkage rate?
The retail industry average is around 1.5-2% of revenue. Rates above this may indicate theft, process errors, or supply chain issues worth investigating.
What causes inventory shrinkage?
Common causes include employee theft, shoplifting, vendor fraud, administrative errors, and damaged or expired goods that were never written off.
Why does shrinkage require extra revenue to offset?
Because shrinkage is a pure loss, you must generate revenue equal to the loss divided by your profit margin just to break even on that loss.