How the Inventory Investment Calculator works
An order costs more than units × price. Prep, inbound freight and the storage the stock will consume all come out of the same cash.
Formula
- Total = Units × Landed cost + Units × Prep + Inbound shipping + Units × Monthly storage × Months
- ROI = Potential profit ÷ Total × 100
Example
About $7,000 invested for roughly $7,000 potential profit: 100% ROI.
Units: 1000Landed cost per unit: 6Prep per unit: 0.3Inbound shipping (total): 400Monthly storage per unit: 0.15Average months stored: 2Selling price: 24.99Net profit per unit (optional): 7
Frequently asked questions
Landed cost?
Unit price plus freight, duty and inspection per unit; use the Landed Cost Calculator.