The formula to calculate shrinkage value, as described in the previous section, is: Shrinkage = Inventory book value – inventory actual value. Shrinkage = $50,000 - $45,000 = $5,000. Shrinkage = 50 - 45 = 5 units. Shrinkage percentage = (Shrinkage value / book value) x 100. More items... Jan 25, 2023