Ending Inventory Calculator

Calculate the value of ending inventory using beginning inventory, purchases, and cost of goods sold

Input Parameters

Calculation Results

Calculation Formula

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

Where:
- Beginning Inventory: The value of inventory at the start of the period
- Purchases: The total cost of inventory acquired during the period
- Cost of Goods Sold: The total cost of inventory sold during the period

Result

Ending Inventory Value:

Ending Inventory Calculator Usage Guide

Learn how to use the Ending Inventory Calculator and understand inventory valuation principles

How to Use This Calculator

  1. Enter your beginning inventory value (the value of inventory at the start of the period)
  2. Enter your total purchases during the period
  3. Enter your cost of goods sold
  4. Click the "Calculate" button to determine your ending inventory value

Understanding Inventory Valuation

Ending inventory represents the value of inventory that remains unsold at the end of an accounting period. It's a crucial figure for calculating your company's profitability and financial position.

The formula used in this calculator is:

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

Practical Applications

  • Financial reporting: Accurate ending inventory values are required for balance sheet preparation
  • Profit calculation: Helps determine your company's gross profit and net income
  • Inventory management: Identifies inventory that may need attention (e.g., slow-moving items)
  • Decision making: Assists in purchasing decisions and pricing strategies

Note: This calculator uses the basic inventory valuation method. For more complex inventory situations, additional factors may need to be considered.