How to use the sell through rate calculator
- Enter the units received during the period.
- If you had stock on hand when the period began, enter it as units on hand at the start. The tool adds it to units received to get the units available.
- Enter the units sold in the same period.
- Optionally enter the days in the period in the advanced options to see the daily pace and how long the remaining stock would take to sell at that pace.
Formula
Units available = units on hand at the start + units received
Sell through rate = units sold / units available x 100
Units left = units available - units sold
Days to sell the rest = units left / (units sold / days)
Some businesses divide by units received only. With nothing on hand at the start the two versions give the same answer, so leave the start field blank to match that method.
180 of 240 units sold
A shop received 240 units and sold 180 of them in 30 days, with nothing on hand at the start. Sell through = 180 / 240 x 100 = 75%. There are 60 units left.
The pace is 180 / 30 = 6 units a day, so the 60 remaining units would take 10 more days if that pace held. If the shop had also started with 60 units on hand, the rate would be 180 / 300 = 60%.
Choosing the denominator
There is more than one way to measure sell through. Dividing by units received alone ignores stock carried in from before. Dividing by units available counts everything you could have sold. Pick the version that matches how you track stock, and use it the same way each period.
Sell through is most useful for one product or a group of similar products over one clear period. Mixing many products hides the ones that sell slowly.
How it differs from turnover
Sell through is a percent of units sold out of the stock available. Inventory turnover is a ratio of cost of goods sold to average inventory value. They answer different questions, and you can calculate turnover with the inventory turnover calculator. To decide when to reorder, the reorder point calculator uses lead time and daily demand.
Whether a rate is high or low depends on the product, the season and your goals. This page does not claim a target.
Assumptions and limits
- Units sold cannot exceed units available, and the tool rejects it if they do.
- All counts are whole units for the same product group and period.
- The pace and days remaining assume the sales rate stays constant.
- Returns are not subtracted unless you reduce the units sold yourself.
Frequently asked questions
How do I calculate sell through rate?
Divide units sold by units available and multiply by 100. Selling 180 of 240 units gives 75%.
Should I include stock on hand at the start of the period?
It depends on how you want to measure. Including it shows how much of everything you had was sold. Leaving it out measures sales against new stock only. The tool lets you choose by filling in or leaving blank the start field.
What if I sold more than I received?
That can only happen if you had stock on hand from before. Enter that stock as units on hand at the start, and the tool will allow the sales.
Is a high sell through rate always good?
Not always. A very high rate can mean you ran out of stock and missed sales. A low one can mean overbuying. Which one matters depends on your business.