Calculate Inventory Carrying Cost is a measure of the total cost associated with keeping inventory on hand. It includes expenses such as warehousing, storage space rent, insurance premiums, depreciation costs, and the cost of capital used to purchase inventory. Knowing your carrying cost can help you make better business decisions and capitalize on opportunities from efficient inventory management. Taking the time to calculate your Inventory Carrying Cost can save you money in the long-run and help you run a successful business.