How to Use This Tool
Put a dollar value on inventory cash tied up during different transit times. Teams compare freight invoices but ignore cash locked in inventory for the extra weeks at sea.
Why Freight Capital Cost needs more than a raw total
Capital savings are only one side; the air premium must still be lower than all benefits combined. For this page, the useful comparison is capital cost saved by air, not whichever input happens to be largest. The Freight Capital Cost result answers the decision in the heading and should not be reused as a score for a different workflow.
The exact Freight Capital Cost formula
Savings equal inventory value × annual capital rate × transit days saved ÷ 365. The visible fields are Inventory value, Annual cost of capital, Air transit and Sea transit. For Freight Capital Cost, read each printed unit before entry and make the values describe one transaction, cohort or reporting window. If those scopes differ, the displayed capital cost saved by air may be arithmetically valid but operationally meaningless.
Interpreting capital cost saved by air
Compare this result plus stockout value with the actual air premium before choosing mode. The ten-percent comparison is deliberately narrow: it tests the influence of inventory value and is neither a forecast nor a confidence interval. Preserve the values used, their dates and the resulting decision so a later reviewer can reproduce why Freight Capital Cost supported the choice.
What this Freight Capital Cost model leaves out
Demand risk, carbon cost, customs delay and damage differences are outside the model. That is where Freight Capital Cost stops being trustworthy. If an excluded factor could reverse capital cost saved by air, extend the model explicitly or use the authoritative account system instead of hiding the factor inside an unexplained adjustment.
Evidence and independent verification
The reference reviewed for Freight Capital Cost is U.S. CBP — Importing guidance. U.S. CBP — Importing guidance supports the named definition or rule but does not supply private values for capital cost saved by air. Before acting on the result, reconcile the worked example with the relevant dashboard, invoice, export or measurement.
Private, reproducible calculation
Freight Capital Cost runs its arithmetic in the current browser tab and requests no login or API key. That keeps the Freight Capital Cost inputs away from the site's calculation server, while leaving the user responsible for detecting stale data or a changed platform rule. When an assumption changes, reopen U.S. CBP — Importing guidance and rerun the saved Freight Capital Cost scenario.
Sources & assumptions
Tool Spec v2 · verified 2026-08-20. Platform rules and fees can change; the editable inputs remain authoritative for your account.
Official references
- U.S. CBP — Importing guidance (checked 2026-08-20)
Model assumptions
- Every input covers the same reporting period or cohort.
- Demand risk, carbon cost, customs delay and damage differences are outside the model.
- The calculator uses only the visible fields and does not fetch account data.
