# Total Annual Inventory Cost

Calculate the Total Annual Inventory Cost with our free online tool using the input parameters: Demand, Order Quantity, Cost Per Unit, Annual Holding and Storage Cost Per Unit of Inventory, Cost of Planning order/Setup Cost

Easily Determine Your Total Annual Inventory Cost with Our Online Calculator. Gain clarity on the overall expenses associated with your company’s inventory. Simply input the demand, cost per unit, order quantity, annual holding and storage cost per unit, and planning order/setup cost. Get instant results for your total inventory cost.

Demand
Order Quantity
Cost Per Unit
$Annual Holding and Storage Cost Per Unit of Inventory$
Cost of Planning order/Setup Cost
\$
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2 Number of calculations
TC = (D \times C) + \left(\frac{Q}{2} \times H\right) + \left(\frac{D}{Q} \times S\right)

The variables used in the formula are:

TC = Total Annual Inventory cost

D = Demand

C = Cost Per Unit

Q = Order Quantity

S = Cost of Planning Order/Setup Cost

H = Annual Holding and Storage Cost Per Unit of Inventory