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FIFO & LIFO Calculator

Enter the units, their costs, and total units sold into the FIFO LIFO calculator, and it will calculate the cost of goods sold, remaining units, and remaining inventory.

No. of Purchases

Unit

Purchases
Unit

Purchases
Unit

Purchases
Unit

Purchases

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Total Units Sold

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The LIFO FIFO calculator is designed to compute ending inventory value and cost of goods sold (COGS) using both FIFO (First In, First Out) and LIFO (Last In, First Out) inventory valuation methods. This tool simplifies inventory management by helping businesses quickly determine accurate stock values under each accounting approach.

What Is Inventory?

Inventory represents the goods a company holds at different stages of production and sale, typically categorized into:

Raw materials awaiting processing
Work-in-progress items
Finished products ready for customers

To calculate inventory, start with beginning inventory, add net purchases made during the period, and subtract the cost of goods sold (COGS). The remaining balance equals ending inventory. Cost of goods sold is deducted to determine the remaining stock value.

The standard inventory formula is:

BI + Net Purchases − COGS = EI

Where:

BI = Beginning Inventory
EI = Ending Inventory

What Is FIFO – First In First Out Method?

FIFO (First In, First Out) assumes that the earliest purchased or produced goods are sold first. In periods of rising prices, FIFO generally results in lower COGS and higher reported profits compared to other methods.

What Is LIFO – Last In First Out Method?

LIFO (Last In, First Out) assumes that the most recently acquired inventory items are sold first. During inflation, LIFO typically produces higher COGS and lower net income.

How To Calculate FIFO And LIFO?

FIFO:

To compute COGS under FIFO, follow these steps:

Identify the oldest inventory costs first
Multiply those costs by the number of units sold

LIFO:

To compute COGS under LIFO, follow these steps:

Determine the most recent inventory purchase costs
Multiply those costs by the number of units sold

Example:

Assume a television retailer purchased inventory throughout the year as shown below:

Month	Number of Units	Price Paid
January	100	$800.00
February	100	$800.00
March	100	$825.00
April	100	$825.00
May	100	$825.00
June	100	$850.00
July	100	$850.00
August	150	$875.00
September	150	$875.00
October	150	$900.00
November	150	$900.00

Total units purchased during the year equal 1,450 televisions.

Assume 1,100 units were sold. Let’s calculate COGS under both methods.

FIFO Method:

200 units × $800 = $160,000
300 units × $825 = $247,500
200 units × $850 = $170,000
300 units × $875 = $262,500
100 units × $900 = $90,000

Total COGS (FIFO) = $930,000

LIFO Method:

450 units × $900 = $405,000
300 units × $875 = $262,500
200 units × $850 = $170,000
150 units × $825 = $123,750

Total COGS (LIFO) = $961,250

FIFO Vs. LIFO:

When prices are increasing, LIFO may reduce taxable income by reporting higher COGS.
When prices are falling, FIFO may better reflect current profitability by matching lower costs with sales.

Profit Margin Formula = (Profit ÷ Revenue) × 100%