Sell-Through Rate Calculator

How to use this sell-through rate calculator

To calculate your sell-through rate, enter the total number of units sold and the number of units that were available to you for sale during a specific period. The tool will instantly calculate your sell-through rate, helping you understand how efficiently your inventory is getting sold.

Sell-through rate formula

Sell-Through Rate (%)=(Number of Units Sold​/Total Units Available for Sale)×100

Understanding the sell-through rate result

The ideal sell-through rate ranges between 40-80% depending on your industry, location and product category. Generally,

• A high sell-through rate suggests strong demand and efficient inventory management. This means that you will have a lower holding cost.
• A low sell-through rate indicates that you may be overstocking considering the demand. Alternatively, it may also indicate that you have priced your products too high.

When to calculate sell-through rate

Calculate the sell-through rate in the following scenarios:

• Regularly, to assess inventory performance and turnover
• To evaluate the success of marketing campaigns or promotional efforts
• When planning inventory purchases or restocking
• To compare performance across different product lines or categories
• While analyzing trends in customer demand

How to calculate Sell-through rate with example

If your store received 500 units of a product and sold 300 units during the month, you can calculate your sell through rate as follows:

Sell-Through Rate (%)=(Number of Units Sold​/Total Units Available for Sale)×100

Sell-Through Rate = (300/500)×100 = 60%

In this example, your sell-through rate is 60%, indicating that 60% of the received inventory was sold within the period.

How to improve your sell-through rate

• Analyze customer demand trends to adjust inventory levels
• Implement targeted marketing campaigns to boost sales
• Optimize pricing strategies to enhance product appeal
• Use promotions or discounts to clear out slow-moving inventory
• Improve inventory turnover with just-in-time restocking
• Regularly review product performance to make informed inventory decisions