ABC Analysis Calculator · Inventory (India)
Paste your items and their annual usage value — the tool auto-sorts stock into A, B and C classes using the Pareto 80/20 principle. Made for manufacturing MSMEs, distributors and traders in India.
📦 Inventory items
0 items| # | Item name | Annual usage value (Rs) |
|---|
Pareto distribution
Ranked classification
| # | Item | Annual value | % of total | Cumulative % | Class |
|---|
What is ABC analysis in inventory management?
ABC analysis is a simple, powerful way for an Indian MSME, manufacturer or distributor to find out where its money is actually tied up. Instead of treating every item equally, it ranks stock by annual usage value and splits it into three classes — a vital few that deserve tight control, and a trivial many that don't. It applies the Pareto 80/20 principle to your warehouse.
How the calculation works
Annual usage value = Annual quantity used × Unit cost
The tool ranks every item from highest to lowest value, adds a running cumulative percentage of total value, and assigns a class where the cumulative figure crosses your chosen cut-offs.
| Class | Typical share of value | Typical share of items | Control policy |
|---|---|---|---|
| A | ~70–80% | ~10–20% | Tight control, frequent review, low safety stock |
| B | ~15–20% | ~30% | Moderate control, periodic review |
| C | ~5–10% | ~50% | Bulk ordering, minimal paperwork |
Why it matters for Indian micro & small enterprises
Research shows medium enterprises routinely use ABC analysis, but most microenterprises and small kirana-scale traders in India never run it — usually because the existing tools are mobile-app-only or locked behind paid software. Yet these are exactly the businesses where freeing up working capital matters most. Knowing that, say, 20% of your raw materials lock up 80% of your purchase money lets you negotiate harder on those few items, hold less of the rest, and reduce GST-blocked working capital.
Adjusting the cut-offs
The default 80% / 95% cumulative cut-offs suit most catalogues. If your stock value is highly concentrated in a handful of SKUs, an 85/95 split works better; for flatter catalogues try 70/90. Keep the same cut-offs over time so you can compare classifications month to month.
Frequently asked questions
What do I enter for each item?
Just the item name and its annual usage value in Rupees (annual quantity consumed × unit cost). If you only track value, enter that figure directly.
How are A, B and C decided?
Items are sorted by value, a cumulative percentage is built up, and each item is classed by where that cumulative figure falls against your A and B cut-offs. The rest become C.
Can I change the thresholds?
Yes. Edit the A and B percentage boxes and the whole table re-classifies instantly.
Is this free for Indian businesses?
Completely free, no sign-up, works on mobile and desktop — built to fill the gap for micro and small enterprises in India.
Is my data stored?
No. Everything runs in your browser. Use Print or Save CSV to keep your own copy.