Shrink Audit Calculator
The quiet profit killer. See exactly how much theft, damage, and spoilage cost you each month — and what share of your net profit is disappearing off the books.
This calculator provides estimates for educational use only. It is not tax, legal, or financial advice. Figures are based on current IRS rules — verify against IRS.gov or consult a licensed professional. See our full disclaimer.
Shrink Inputs
Shrink Audit
* Healthy retail shrink is about 1-2% of sales (NRF); food businesses watch spoilage on top. Shrink comes straight out of gross margin and net. Educational reference, not advice.
What This Calculator Tells You
Shrink $ / Month
The dollar cost of loss at your shrink rate.
% of Sales
Versus the healthy 1-2% retail band.
Profit Erosion
What share of net profit shrink eats.
Actionable
Small drops flow almost entirely to the bottom line.
Authoritative References
- National Retail Federation — Research & Insights — the ~1-2% of sales retail shrink band.
- Food-spoilage and loss ranges (retrieved 2026-08-13) documented in our type-specific guides.
Estimates only. From your inputs; not financial advice.
Shrink FAQs
Inventory loss from theft, damage, spoilage, and paperwork error. It is usually measured as a percent of sales — healthy retail is about 1-2% (NRF); food businesses add spoilage on top.
It comes straight out of gross margin and net. A store netting 4-6% can lose most of its profit to unchecked shrink — and it is invisible until a stock count fails to reconcile.
Tighten POS controls, cash handling, cooler-date rotation, receiving checks, and cycle counts. Small drops in shrink % flow almost entirely to the bottom line.