Understanding Retail Open-to-Buy
How we calculate. OTB = planned sales + planned ending inventory − BOM − on-order. See our methodology and accuracy policy .
Real-world scenario: A typical Retail Open-to-Buy case uses planned sales 80000 and planned ending inventory 40000. Enter the same figures below to reproduce the worked path.
What is Retail Open-to-Buy?
A merchandising purchase budget KPI. Distinct from stock-to-sales (coverage ratio) and GMROI (productivity).
- Same dollar basis (retail or cost—label it)
- On-order = already committed receipts
- Negative OTB = overbought vs plan
The Formula
Worked Example
Common Use Cases
- Monthly OTB: buy budget
- Category plans: remaining buy
- Receipt pacing: on-order impact
Pro Tips
- Freeze retail vs cost method
- Update on-order often
- Pair with weeks of supply
| Scenario | When to use |
|---|---|
| Percent of a number | Finding a part of a whole (tax, tip, score) |
| Percent change | Comparing old vs new values |
Limitations: Retail Open-to-Buy results are educational retail merchandising aids—not accounting, tax, or inventory-system advice. Confirm definitions with your POS, ERP, and brand reporting standards.
Common mistakes
- Swapping part and whole: The denominator must be the full total, not a subset.
- Rounding too early: Carry extra decimal places through multi-step work before rounding the final percent.
- Mixing percent and decimal forms: Enter rates in the format the calculator labels expect.
The worked example for retail open to buy was verified with the calculator form on this page—enter the same values to confirm the result.
When to use this calculator
- Use this page when your wording matches retail open to buy and the form labels on screen.
- Use percent of a number for “what is X% of Y?” problems.
- Use number is what percent when you know part and whole and need the percent.
Still unsure about retail open to buy? Start with the quick answer above, then open the linked calculator that matches your wording.
❓ Frequently Asked Questions
How do I use this retail open to buy calculator?
For retail open to buy, enter the values labeled on the form, then press Calculate. Compare the result to the worked example on this page.
What formula does this page use?
See the quick answer and formula box above for retail open to buy—the same percentage calculator expression is applied to your inputs.
What if my result looks wrong?
When checking retail open to buy, re-check part vs whole (or rate vs base), rounding, and whether percents were entered as 25 rather than 0.25 when the form expects percents.
Authoritative References
For retail merchandising and store performance concepts, consult:
- National Retail Federation — retail industry context
- Retail Council — retail operations resources
- Shopify Blog — ecommerce and retail KPI explainers