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Inventory & Procurement CALCULATOR

Stockout Cost Calculator

Stockout Cost uses units missed, contribution margin per unit.

Free to useFormula explainedScenario friendly
Stockout Cost CalculatorDecision support
INPUTSDefined
MODELVisible
OUTPUTInstant
AssumptionsCalculationResult
Quick answer

Stockout Cost uses units missed, contribution margin per unit.

Enter your inputs
RESULT
Calculated output
0

4,500 is the example result. Read it using the units and relationship stated below.

Result = [Units missed] × [Contribution margin per unit]
Purpose

Stockout Cost uses units missed, contribution margin per unit.

Balancing availability against cash tied up in stock

For stockout cost, the relationship is Result = [Units missed] × [Contribution margin per unit]. The amount depends on the supplied units missed, contribution margin per unit, rather than a live market price or a value imported from another record. An inventory decision must connect demand, lead time and the cost of holding goods. Buying more can reduce ordering frequency but ties up cash and storage. A stock ratio is useful only when its demand period is clear.

What the model includes

Result = [Units missed] × [Contribution margin per unit] Use purchase and sales records from a comparable period. Separate regular consumption from a promotion or one-off order; otherwise a reorder assumption can carry a temporary spike into the next purchasing cycle. Check supplier pack sizes, minimum quantities and delivery reliability before turning a calculated amount into an order. The model does not measure deterioration, seasonality or the cost of a stockout unless those inputs are present.

Example with the supplied inputs

Units missed: 150; Contribution margin per unit: 30. Result: 4,500. The values are illustrative.

Compare one changed input

Units missed changes from 150 to 165. The result becomes 4,950. All other inputs remain fixed.

Calculation rule

Formula

Result = [Units missed] × [Contribution margin per unit]

Inputs and output

Example inputs and entry conventions
Input Example value Entry convention
Units missed 150 Use the source quantity represented by units missed. Keep the counted population fixed and avoid mixing a unit value with a period total.
Contribution margin per unit 30 Use the source quantity represented by contribution margin per unit. Keep the counted population fixed and avoid mixing a unit value with a period total.

Output: 4,500 is the example result. Read it using the units and relationship stated below. Use the formula to distinguish a cash amount, count, percentage or ratio.

How to use the page

STEP 01

Collect the inputs

Gather Units missed, Contribution margin per unit. Use one period and the units shown in the form.

STEP 02

Run the calculation

Enter the values and select the action. The calculation rule above explains how the inputs produce the result.

STEP 03

Compare a scenario

Change Units missed on its own, keeping the other inputs fixed. Read both results before changing another assumption.

Worked example

With the example inputs listed above, the result is 4,500.

Change Units missed from 150 to 165 while keeping every other value fixed. The result becomes 4,950. This comparison isolates that input; it does not forecast how other variables will respond.

Check the stated formula, units and limits before using the result in a decision.

Calculation and source notes

Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.

Content updated: October 11, 2026
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