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Fill rate
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What is
Fill rate is the percentage of customer demand fulfilled from your available stock, without backorders or lost sales. In inventory management, a fill rate of 95% means 95 out of every 100 units ordered were shipped from existing stock—no waiting, no substitution.
What you need to know about fill rate:
Fill rate measures fulfillment from on-hand stock, making it a direct indicator of inventory performance and customer service level.
A fill rate below 85% typically points to stockout problems; rates above 95% are considered strong for most retail and wholesale categories.
Three types exist—order fill rate, line fill rate, and unit fill rate—each measuring fulfillment at a progressively more granular level.
How to calculate fill rate
Fill rate is calculated by dividing units shipped by units ordered, then multiplying by 100.
Why is calculating fill rate important?
Improves customer satisfaction
A high fill rate means customers receive what they ordered when they expected it, reducing complaints, returns, and the cost of managing backorders.
Exposes inventory gaps
Tracking fill rate over time surfaces recurring stockout patterns so you can adjust reorder points and safety stock before lost sales compound.
Guides smarter purchasing decisions
When fill rate drops for specific SKUs or product lines, it points directly to where demand forecasting and purchasing need attention. Catching the decline early—rather than after a stockout—prevents lost revenue and protects supplier relationships.
Frequently asked questions
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