Inventory
ABC inventory analysis.
Paste one item per line with its yearly value, or yearly units and unit cost. See which few items carry most of the value and which are the long tail.
ABC analysis ranks items by annual value and groups them by cumulative share. In the sample below, 2 of 10 items (20%) make up 80% of the value (class A), while 5 items (50%) make up 4% (class C).
Worked example
Ten items have yearly values of $50,000.00, $30,000.00, $8,000.00, $5,000.00, $3,000.00, $1,800.00, $1,200.00, $600.00, $250.00 and $150.00, a total of $100,000.00. Sorted high to low, the first two items reach 80% of the value. With cutoffs of 70% and 95%, class A is the top 2 items (80.0% of value), class B is the next 3 (16.0%) and class C is the last 5 (4.0%). The 5 class C items are half of the catalogue but only 4.0% of the money, so they deserve the least counting and review effort.
How it works
Each item's value is its annual units x unit cost (or the value you enter). Items are sorted from highest to lowest value and a running total is kept. An item is class A while the cumulative share before it is under the A cutoff, class B while under the B cutoff, and class C after that. The item that crosses a cutoff therefore stays in the higher class, and the highest-value item is always A. Ties keep the order you pasted them.
There are no fixed thresholds. Wikipedia notes that different proportions can be used, and gives one example in which 20% of items account for 70% of annual consumption value (A), 30% of items for 25% (B) and 50% of items for 5% (C); this page defaults to 70% and 95% cumulative cutoffs to match that example and lets you change them. Use annual cost value (units x unit cost) if you are classifying for purchasing and cycle counting, or annual sales value if you are classifying for merchandising.
The list is processed entirely in your browser (up to 5000 lines). Nothing is uploaded and the isolated tool frame loads no third-party scripts.
Everything runs in your browser. Nothing you type is sent or stored.
Sources
- ABC analysis - Wikipedia (opened 2026-10-08): the description of A, B and C classes by share of annual consumption value, that there are no fixed thresholds, and the 20/30/50% of items versus 70/25/5% of value example.
FAQ
What is ABC inventory analysis?
A way to rank inventory by importance, usually annual consumption value, and split it into classes A (few items, most of the value), B (middle) and C (many items, little value).
What are the usual ABC cutoffs?
There are no fixed thresholds. Wikipedia gives an example where class A is the items making up 70% of annual value, B the next 25% and C the last 5%, and notes that companies use other proportions. Adjust the two cutoff boxes to your own policy.
What should I do differently for each class?
A common approach is to review and count class A items most often and control them tightly, and to manage class C items with simple rules. Wikipedia describes A items as needing frequent value analysis. The right frequency depends on your business.
Should I rank by cost or by sales?
For purchasing and counting, rank by annual cost value (units x unit cost). For merchandising and shelf space, rank by annual sales or gross profit. Run the tool both ways if you need both.
Is my item list uploaded anywhere?
No. The analysis runs in your browser and the isolated tool frame has no ads or third-party scripts, so you can paste real SKU lists.