ABC Analysis Calculator
Paste your SKUs and usage values. Get A/B/C classes, cumulative percentages, and a counting cadence for each class.
| Item | Usage value | % of total | Cumulative % | Class |
|---|---|---|---|---|
| SKU-101 | $40,000 | 40.0% | 40.0% | A |
| SKU-102 | $28,000 | 28.0% | 68.0% | A |
| SKU-103 | $14,000 | 14.0% | 82.0% | A |
| SKU-104 | $6,000 | 6.0% | 88.0% | B |
| SKU-105 | $4,000 | 4.0% | 92.0% | B |
| SKU-106 | $3,000 | 3.0% | 95.0% | B |
| SKU-107 | $2,000 | 2.0% | 97.0% | C |
| SKU-108 | $1,500 | 1.5% | 98.5% | C |
| SKU-109 | $1,000 | 1.0% | 99.5% | C |
| SKU-110 | $500 | 0.5% | 100.0% | C |
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How it works
ABC analysis sorts your catalogue by annual usage value — unit cost multiplied by annual units sold — and cuts it into three classes. The point is to stop treating every SKU the same. A handful of items carry most of your inventory value, and they deserve most of your attention.
Usage value, not unit price. A $2 part sold 30,000 times a year is worth $60,000 of annual flow; a $400 part sold ten times is worth $4,000. The cheap part is the one that matters. Ranking by sticker price is the single most common way this analysis goes wrong.
The 80/15/5 split is a convention, not a law. Adjust the cut-offs above to match your catalogue — the shape (a short head, a long tail) holds almost everywhere, but the exact percentages don't have to.
What each class actually changes
- Class A — count cadence:Weekly
- Class A — reorder rules:Tight, reviewed, named buyer
- Class B — count cadence:Monthly
- Class B — reorder rules:Standard min/max
- Class C — count cadence:Quarterly
- Class C — reorder rules:Static min/max, bulk order
When to override the classification
Two kinds of item deserve a manual promotion to A regardless of what the maths says. The first is criticality: a $2 O-ring that stops a $50,000 machine belongs in A-tier handling, because the cost of the stockout dwarfs the cost of carrying it. The second is strategic slow movers — warranty spares, regulatory-required stock, safety items where running out creates compliance exposure.
Flag those as "A by criticality" so they get the same count cadence as your top revenue SKUs. Usage value is the default ranking, not the only one.
Tired of rebuilding this spreadsheet every quarter?
InventoryQuick keeps usage value current from real stock movements, so your ABC classes update themselves instead of going stale the week after you build them. From $19/mo flat, no per-user fees.
Inventory turnover calculator → · All free tools → · Read the full guide →