How to Calculate Months on Hand
Introduction & Importance
Calculating months on hand is a critical inventory management technique that helps businesses understand how long their current stock will last…
How to Use This Calculator
- Enter the current stock amount.
- Enter the average monthly usage.
- Click ‘Calculate’.
Formula & Methodology
The formula to calculate months on hand is simple: Stock / Usage per Month = Months on Hand…
For more information, see the SBA’s guide to inventory management.