Retail Open-to-Buy (OTB) Monthly Merchandising Purchasing Budget Calculator

Compute Open-to-Buy (OTB) at retail and wholesale cost to prevent overbuying or stockouts.

Open-to-Buy (OTB) Budget at Cost
USD 61,650.00
Open-to-Buy (OTB) at Retail Value USD 137,000.00
Total Merchandise Needed (Sales+MD+EOM) USD 442,000.00
Available Supply (BOM + On-Order) USD 305,000.00
Inputs
⚡ Scenarios:
Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
$
Planned gross sales for the period at retail.
$
Planned promotional markdowns and employee discounts at retail.
$
Target End-of-Month (EOM) inventory at retail.
$
Actual Beginning-of-Month (BOM) inventory at retail.
$
Merchandise already on order scheduled for delivery this month (retail).
%
Initial Markup (IMU %) to convert OTB Retail to OTB Wholesale Cost.
Results & Graph
Open-to-Buy (OTB) Budget at Cost
USD 61,650.00
Open-to-Buy (OTB) at Retail Value
USD 137,000.00
Total Merchandise Needed (Sales+MD+EOM)
USD 442,000.00
Available Supply (BOM + On-Order)
USD 305,000.00

Open-to-Buy (OTB) Budget at Cost

Graph 1 • Open-to-Buy (OTB) Budget • Domain Architecture & Live Telemetry Maps Planned Monthly Sales Retail, Planned Markdowns Shrink Retail, Planned End Of Month Inventory through Open-to-Buy (OTB) Budget Formula.
Open-to-Buy (OTB) Budget • Operations & Process Control Telemetry Threshold / ROP (USD 61,650.00) Safety Buffer (USD 137,000.00) Open-to-Buy (OTB) Budget at Cost USD 61,650.00 Open-to-Buy (OTB) USD 137,000.00 Total Merchandise USD 442,000.00
Graph 2 • Open-to-Buy (OTB) Budget at Cost Across Planned Monthly Sales Retail Sweep (40% → 160%) Evaluates OTB_Retail = PlannedSales + PlannedMarkdowns + PlannedEOM − ActualBOM − across 7 operating points (current input highlighted).
0 $ 56.2k $ 112.4k $ 21.1k 60.0k$ 34.6k 90.0k$ 48.1k 120.0k$ 61.6k 150.0k$ 75.2k 180.0k$ 88.7k 210.0k$ 102.2k 240.0k$
Graph 3 • Joint Sensitivity: Planned Monthly Sales Retail × Planned Markdowns Shrink Retail Compares Open-to-Buy (OTB) Budget at Cost when Planned Markdowns Shrink Retail is shifted +25% (solid) vs. −25% (dashed).
0 $ 45.8k $ 91.6k $ --- Planned Markdowns Shrink Retail @ 75% 42.8k -30% 52.9k -15% 63.0k +0% 73.1k +15% 83.3k +30%
Summary: Open-to-Buy is USD 137,000.00 at Retail and USD 61,650.00 at Wholesale Cost (45% cost complement).
Summary: Open-to-Buy is USD 137,000.00 at Retail and USD 61,650.00 at Wholesale Cost (45% cost complement).
⚡ Send result to: ROI Calculator →Percentage →
Interactive chart & math engine powered by CalculatorGraph

Formula & Mathematical Methodology: Open-to-Buy (OTB) Budget Formula

OTBRetail = PlannedSales + PlannedMarkdowns + PlannedEOM − ActualBOM − OnOrder
OTBCost = OTBRetail × (1 − InitialMarkup%)
OTB_Retail = PlannedSales + PlannedMarkdowns + PlannedEOM − ActualBOM − OnOrder; OTB_Cost = OTB_Retail × (1 − InitialMarkup%)
  • plannedMonthlySalesRetail: Planned gross sales for the period at retail.
  • plannedMarkdownsShrinkRetail: Planned promotional markdowns and employee discounts at retail.
  • plannedEndOfMonthInventory: Target End-of-Month (EOM) inventory at retail.
  • beginningOfMonthInventory: Actual Beginning-of-Month (BOM) inventory at retail.
  • alreadyOnOrderRetail: Merchandise already on order scheduled for delivery this month (retail).
  • initialMarkupImuPct: Initial Markup (IMU %) to convert OTB Retail to OTB Wholesale Cost.

Rounding: Internal floating-point calculations preserve full precision; currency and percentage outputs round to 2 decimal places.

Worked Example: Open-to-Buy (OTB) Budget Worked Example

Compute Open-to-Buy (OTB) at retail and wholesale cost to prevent overbuying or stockouts.

  1. Enter your operational, financial, or physical measurement inputs.
  2. Apply the standard domain equation: OTB_Retail = PlannedSales + PlannedMarkdowns + PlannedEOM − ActualBOM − OnOrder; OTB_Cost = OTB_Retail × (1 − InitialMarkup%).
  3. Review the primary result, sensitivity metrics, and 3 interactive SVG graphs.
Result: Calculates Open-to-Buy (OTB) Budget via OTB_Retail = PlannedSales + PlannedMarkdowns + PlannedEOM − ActualBOM − OnOrder; OTB_Cost = OTB_Retail × (1 − InitialMarkup%).

Frequently Asked Questions

How does the Retail Open-to-Buy (OTB) Monthly Merchandising Purchasing Budget Calculator calculate results?

It computes OTB_Retail = PlannedSales + PlannedMarkdowns + PlannedEOM − ActualBOM − OnOrder; OTB_Cost = OTB_Retail × (1 − InitialMarkup%) directly in your browser and updates three custom SVG visualizations in real time.

Can I use Goal Seek to solve backwards for any input variable?

Yes. Click "🎯 Goal Seek" in the results toolbar to solve backwards for any input parameter.

Are my business and personal numbers kept private?

Yes. All calculations execute 100% locally in your browser with zero server transmission.

Business & Marketing · Retail & Merchandising

Retail Open-to-Buy (OTB) Monthly Merchandising Purchasing Budget Calculator: inputs, method, and how to read the result

Compute Open-to-Buy (OTB) at retail and wholesale cost to prevent overbuying or stockouts.

Choose inputs for the case you are checking

The defaults are illustrative. Replace them with values for your case and keep the units shown beside each field.

  • Display Currency: Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
  • Planned Monthly Sales Retail: Planned gross sales for the period at retail.
  • Planned Markdowns Shrink Retail: Planned promotional markdowns and employee discounts at retail.
  • Planned End Of Month Inventory: Target End-of-Month (EOM) inventory at retail.

What the calculation includes

With the default values shown, Open-to-Buy (OTB) Budget at Cost is USD 61,650.00. The calculation follows Open-to-Buy (OTB) Budget Formula; the formula and variable definitions above show how the inputs combine.

One-input check: With the other defaults held constant, changing Planned Monthly Sales Retail from 150,000 $ to 165,000 $ changes Open-to-Buy (OTB) Budget at Cost from USD 61,650.00 to USD 68,400.00. This is a comparison inside the calculator's stated model, not a prediction.

Where to use caution

  • Uses industry-standard APICS/ASCM supply chain, lean manufacturing, and consumer physics formulas.
  • Actual commercial freight tariffs, marketplace commissions, and utility rates vary by carrier and contract.

Scope: Global Supply Chain, Business & Consumer Standard Check the assumptions and limitations against your situation before relying on the estimate.

More in Business & Marketing: ROI Calculator (Return on Investment), Percentage Calculator.