Free tool
Stockout cost calculator
What does running out actually cost you? Estimate lost revenue and lost profit from days out of stock.
The formula
Example: a product that sells 6 a day at $24 with an $8 cost, out for two weeks, with 20% of buyers coming back later, loses about 67 units and $1,075 of gross profit.
That's before the hidden costs: ads still sending traffic to a sold-out page, lost reviews and ranking, and customers who find a competitor and stay there.
How to stop it happening
Most stockouts happen because the order went in too late, not because nobody noticed stock was low. Compare days of stock with the supplier lead time, and order when you hit the reorder point, not when the shelf looks empty.
FAQ
How do you calculate the cost of a stockout?
Days out of stock x average daily sales x gross profit per unit gives lost profit. Some of those customers come back later, so subtract a recapture estimate if you have one.
Is a stockout worse than overstock?
For best-sellers, usually yes: you lose margin, ad spend keeps running into a sold-out page, and some customers switch for good. For slow sellers, overstock tends to cost more.
How do I prevent stockouts on Shopify?
Set a reorder point per product that covers the supplier's lead time plus safety stock, and check it weekly. A low-stock alert alone fires too late when lead times are long.
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