Open-to-Buy Calculator

Calculate your merchandise budget for the month — know exactly how much you can (or cannot) buy.

Monthly Planning Inputs

OTB = Planned Sales + Planned EOM Stock + Markdowns + Shrinkage − Planned BOM Stock

Planned Sales ($)

Planned BOM Stock — Beginning of Month ($)

Planned EOM Stock — End of Month ($)

Planned Markdowns ($)

Planned Shrinkage ($)

What is Open-to-Buy?

Open-to-buy (OTB) is the dollar amount of merchandise a retail buyer is budgeted to purchase during a specific time period. It ensures you maintain the right inventory levels to meet sales goals without over-stocking or under-stocking.

The formula breaks down like this:

Planned Sales — what you expect to sell at retail value this month
Planned EOM Stock — the inventory level you want to end the month with
Planned Markdowns — reductions in retail price (clearance, promotions)
Planned Shrinkage — losses from theft, damage, or administrative error
Planned BOM Stock — the inventory you already have at the start of the month

A positive OTB means you have budget to purchase additional inventory. A negative OTB means you are already over-bought — buying more would result in excess inventory that strains cash flow and storage.

OTB is tracked at retail value (not cost), and buyers often maintain an OTB plan for 6–12 months in advance to align purchasing with seasonal demand patterns.