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Sell-Through Rate Calculator

Sell-Through Rate shows what portion of the stock a business received has actually sold, a direct read on whether a product or a whole order was sized right.

Sell-Through Rate

70.0%

What This Means

A low sell-through rate on a specific SKU is an early warning of an over-ordering mistake, well before a markdown or write-off.

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The Formula

Sell-Through Rate = (Units Sold / Units Received) × 100

Why It Matters

A low sell-through rate on a specific SKU is one of the clearest early warnings of an over-ordering mistake, well before it shows up as a markdown or a write-off. Tracked by product line, it also helps prioritize which items deserve a reorder and which need to be discounted to clear.

Example

A store receives 500 units of a product and sells 350 of them in the tracked period. Sell-through rate is (350 divided by 500) times 100, which equals 70%.

Frequently Asked Questions

  • Retailers commonly target 80% or higher within a planned selling window, though the right target varies by category, seasonality, and how quickly a product is expected to move.

  • Over-ordering relative to actual demand, weak marketing support for that product, and pricing that's out of step with what customers expect to pay are the most common causes.

Related Calculators

Inventory Turnover CalculatorDays Sales of Inventory (DSI) Calculator

From the Glossary

Sell-Through RateInventory TurnoverStockout Rate
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