How to Use FIFO Inventory Calculator
The FIFO Inventory Calculator estimates inventory cost under the first-in, first-out method. Enter up to four purchase batches with quantity and unit cost, then enter the sales or issue quantity. The calculator consumes the earliest batch first, then moves to later batches until the sales quantity is filled or inventory runs out.
The FIFO Inventory Calculator outputs FIFO cost of goods sold, fulfilled sales quantity, ending inventory quantity, ending inventory value, average COGS per unit, and remaining inventory by batch.
Formula & Theory — FIFO Inventory Calculator
The FIFO Inventory Calculator applies this rule:
Earliest inventory is issued first.
COGS = Cost of units removed from the earliest batches.
Ending Inventory = Value of units left in the newest remaining batches.
| Symbol | Meaning |
|---|---|
| Purchase Batch | A group of units bought at the same unit cost |
| COGS | Cost assigned to sold or issued units |
| Ending Inventory | Remaining units and their value after FIFO issue |
FIFO can produce different profit and inventory values than average cost or LIFO methods when prices change. The FIFO Inventory Calculator is useful for understanding that batch-level effect.
Use Cases for FIFO Inventory Calculator
The FIFO Inventory Calculator is useful for:
- Small retail accounting — Estimate COGS for sales from multiple purchase batches.
- Ecommerce inventory — Track remaining stock value after orders ship.
- Cost analysis — Understand how rising or falling unit costs affect COGS.
- Inventory planning — See which batches remain after a planned sale.
The FIFO Inventory Calculator provides a simple batch-based view of inventory movement and ending value.