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Open-to-Buy Budget Calculator

Calculate open-to-buy — the merchandise dollars a retail buyer still has left to order this period after planned sales, markdowns and stock targets.

Beginning-of-month stock (retail $)

Planned sales this period

Planned markdowns

Planned end-of-month stock

Merchandise already on order

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How it works

Planned purchases = planned end stock + planned sales + planned markdowns − beginning stock · Open-to-buy = planned purchases − merchandise already on order

Open-to-buy (OTB) is the buyer’s spending governor: the merchandise dollars still available to order for a period once you account for what you plan to sell, mark down and want left on the shelf at month-end. You first work out the total purchases the plan requires — end stock plus outflows (sales and markdowns) minus what you started with — then subtract goods already on order to see what is genuinely open. A positive OTB means room for new buys; a negative one warns you are over-committed and should cancel, delay or push stock through faster.

Worked example

A department starts the month with $50,000 of stock and plans $30,000 of sales, $4,000 of markdowns and a $45,000 ending stock. Planned purchases are 45,000 + 30,000 + 4,000 − 50,000 = $29,000; with $8,000 already on order, the open-to-buy is $21,000 of fresh orders the buyer can still place.

Frequently asked questions

Is open-to-buy measured at cost or retail?

Traditional OTB is planned at retail dollars, because sales, markdowns and stock plans are all expressed at retail. You then convert the open retail figure to cost using your markup when actually placing orders. This calculator works in retail dollars.

What does a negative open-to-buy mean?

It means your committed and on-hand merchandise already exceeds what the plan needs — you are over-bought. The fixes are to cancel or delay incoming orders, add markdowns to move stock, or raise the sales plan if demand supports it.

How often should OTB be recalculated?

Most retailers refresh it monthly and revisit weekly as actual sales come in. Because it feeds directly off the sales and stock plan, updating it whenever those change keeps buying aligned with real demand.

Related calculators

Sell-Through by Week Calculator

Track weekly sell-through rate on a buy — units sold versus units received — and project the weeks to clear the remaining stock at the current pace.

Retail Markdown Cadence Calculator

Plan a staged retail markdown cadence — successive percent-off steps from full price to clearance — and see the final price, cumulative discount and margin at each stage.

Inventory Turnover Calculator

Calculate inventory turnover from COGS and average inventory, plus days inventory outstanding — how many days of stock you hold.

Retail Sales Per Square Foot Calculator

Work out sales per square foot (or square meter) of selling space from yearly, monthly or weekly sales, see what a target needs, and add gross margin and rent to get margin per square foot, occupancy cost ratio and break-even sales density.

Educational estimate, not financial advice.