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Ending Inventory Calculator

Calculate ending inventory value.

Ending Inventory Calculator - Free Inventory Valuation Tool

Ending Inventory Calculator

Calculate ending inventory value using different costing methods

Inventory Costing Method

Beginning Inventory

Purchases During Period

No purchases added. Click "Add Purchase" to get started.

Units Sold During Period

Inventory Calculation Results

Ending Units

Ending Inventory Value

Cost of Goods Sold

Average Unit Cost

Detailed Breakdown

Source Units Unit Cost Total Value

Understanding Inventory Costing Methods

FIFO (First In, First Out)

Assumes that the oldest inventory items are sold first. During inflation, FIFO results in:

  • Lower cost of goods sold
  • Higher ending inventory value
  • Higher reported profits

LIFO (Last In, First Out)

Assumes that the newest inventory items are sold first. During inflation, LIFO results in:

  • Higher cost of goods sold
  • Lower ending inventory value
  • Lower reported profits (tax advantage)

Weighted Average

Uses the average cost of all inventory items. This method:

  • Smooths out price fluctuations
  • Results fall between FIFO and LIFO
  • Simplifies inventory management

Basic Inventory Formula

Ending Inventory = Beginning Inventory + Purchases - Cost of Goods Sold

Note: The calculation method (FIFO, LIFO, or Weighted Average) affects how we determine which specific units remain in ending inventory and their associated costs.

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v1.0.0.758733