ABC classification calculator

Paste a CSV with SKU and annual value to classify your items into A, B, and C classes based on cumulative value share.

CSV data (sku,value)

Each line should have two columns: SKU and annual value. Header row is optional. Example: sku,value / A,5000 / B,3000…

Classification results

Run the calculator to see the ABC class, value, and cumulative share for each SKU.

This ABC classification is a simple value-based method and should be combined with your own business judgement.

What is ABC classification?

ABC classification is a simple way to segment inventory based on value. Class A items represent most of the value, B is the mid-range, and C covers many low-value items.

How the ABC classes are calculated

The calculator sorts SKUs by value from highest to lowest, computes the cumulative value share, and assigns A, B, or C based on thresholds.

Sort SKUs by annual value from highest to lowest.
Calculate the cumulative share of total value as you move down the list.
Label SKUs as A, B, or C based on their cumulative share.

Typical thresholds: A ≈ up to 80% of value, B ≈ 80–95%, C ≈ above 95% of total value.

Example CSV for ABC classification

Here is a simple example dataset you can paste into the tool. Feel free to replace it with your own SKUs and values.

sku,value
A,5000
B,3000
C,500
D,500
E,50

After running the calculator, you will see which items fall into A, B, and C classes based on their cumulative value share.

When should you use ABC classification?

When you want to focus your attention on the few SKUs that drive most of the value.
When designing stocking, service level, or counting policies by class (A vs B vs C).
When you need a simple way to segment a large assortment quickly.
When prioritising improvements or data quality checks starting from A class items.

How this ABC tool helps your business

Clarifies which SKUs are truly critical for revenue or margin.
Supports different policies for purchasing, safety stock, and counting by class.
Gives a quick, visual way to explain priorities to non-technical stakeholders.
Forms a base layer for more advanced segmentation (XYZ, service-level based, etc.).

Related tools

Safety Stock Calculator Use safety stock to determine how much extra inventory to hold for A items.
Inventory Turnover Calculator Use inventory turnover to understand how fast each class moves through the system.
CSV Profit Analyzer Use the CSV profit analyzer to connect ABC classes with margin and profit.

ABC classification FAQ

Does ABC classification depend only on sales value?
This calculator uses value as the driver, but you can adapt the logic to use margin, volume, or another metric if needed.
How often should I refresh the ABC classification?
Most teams update it monthly or quarterly, depending on how fast demand and prices change.
Are the 80/15/5% thresholds mandatory?
No. They are a common starting point. You can adjust thresholds to fit your business reality.
Can I use this ABC for all product categories?
Yes, but it is usually more insightful when you segment similar categories separately instead of mixing everything together.