The term shrinkage actually refers to the term utilization; so, a shrinkage calculator is more likely a device that calculates the utility & wastage of anything. It can be raw materials, energy, or even working hours.

If you have the necessary amounts that you need for calculation, you can use the formula to find out the result.

## What Are the Uses of Shrinkage Calculator?

Let’s find out where you can use a shrinkage calculator & make the best use of what you have:

- It’s mostly used in the textile industry; you can calculate how much clothes you have utilized to make garments & produced.
- f you want to count the total working hours of a factory, including all employees, you can use the device & method.

## Formula: How To Calculate Inventory Shrinkage Percentage:

If you want to manually calculate shrinkage percentage you can do it, though it takes a lot of time to calculate that can our calculator with just a few seconds!

**Shrinkage Percentage =** ((Book Value – Current Value) ÷ Book Value) x 100%

### Example:

Supposed Current value 16000 and book value 18000. Now see how our calculator calculate it.

**Shrinkage Percentage =** ((18000 – 16000) ÷ 18000) x 100%

= (2000 ÷ 18000) x 100%

= 0.1111111 x 100%

= 11.11%

## How To Calculate Shrinkage Percentage in Excel:

If you want to calculate acceptable shrinkage percentage in excel then format a excel sheet like the below table.

A | B | |

1 | Current Value: | 14000 |

2 | Book Value: | 15000 |

3 | Shrinkage Percentage: | =((B2-B1)/B2)*100% |

Use shrinkage formula on B3 cell. The formula is:

**=((B2 – B1) / B2) * 100%**

You can also follow the below screenshot.