Tyms

Free inventory valuation calculator

Work out the value of the stock you have left and the cost of what you sold. Compare FIFO, LIFO and weighted average on the same purchases.

  • Free to use
  • FIFO, LIFO and average
  • Instant results

Purchase layers

Purchase dateQuantity purchasedUnit costTotal costActions
No purchase layers yet. Add your first purchase below.

Enter an item name to start adding purchase layers.

Results (FIFO)

Ending inventory value

USD 0.00

Cost of goods sold (COGS)

USD 0.00

01

Every purchase counted

Add each delivery with its date, quantity and unit cost, so the calculation follows how your stock really came in.

02

Switch methods in a click

See how FIFO, LIFO and weighted average change your closing stock and cost of goods sold.

03

Numbers for your statements

Use ending inventory on your balance sheet and cost of goods sold on your income statement.

Why the valuation method matters

When prices change, units bought at different times cost different amounts. Your valuation method decides which of those costs go to the goods you sold and which stay with the goods on your shelves. That choice moves both your reported profit and your tax bill.

Under IFRS, IAS 2, Inventories sets the rules for measuring stock. US businesses follow US GAAP and IRS guidance, which still allow LIFO in some cases.

The three methods, side by side

  • FIFO (first in, first out): the oldest units are treated as sold first, so the stock you have left carries the most recent prices.
  • LIFO (last in, first out): the newest units are treated as sold first, so remaining stock carries older prices. LIFO is not permitted under IFRS.
  • Weighted average: all units share one average cost, worked out from total cost divided by total units.

When prices are rising, FIFO usually shows higher profit and higher closing stock, while LIFO shows lower profit. Weighted average sits in between.

How to use the calculator

Enter the item name and choose a currency and valuation method. Add each purchase with its date, quantity and unit cost; you can edit or remove a purchase at any time. Then enter how many units you sold.

The calculator shows your ending inventory value, your cost of goods sold and, for weighted average, the average cost per unit. Keep in mind that year-end accounts may also require stock to be written down if it can only be sold for less than it cost.

Questions, answered

Short answers about how this tool works, what it covers and where its limits are.

Get started

FIFO is the most common and matches how most goods physically move. Weighted average suits items that are mixed together, like fuel or grain. Whatever you choose, use it consistently and confirm it is allowed under your reporting and tax rules.

Cost of goods sold is the cost of the units you sold, taken from your purchases in the order your method sets. Opening stock plus purchases, minus closing stock, gives the same figure.

Generally not. IFRS does not allow LIFO, so most countries that report under IFRS use FIFO or weighted average.

It values one item at a time. Run it for each product line and add the results together for your total stock value.

Check your purchase entries first. You cannot sell stock you never bought, so a shortfall usually means a delivery or opening balance is missing.

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