Free FIFO & LIFO Calculator
COGS & ending inventory value
Enter your purchase batches (oldest first) and units sold to instantly calculate COGS and ending inventory value under FIFO, LIFO, or both — side by side.
Purchase Batches (oldest first)
Units Sold
What Is a FIFO/LIFO Calculator?
A FIFO/LIFO Calculator helps you determine the Cost of Goods Sold (COGS) and the value of remaining inventory under two different accounting cost flow assumptions. Under FIFO (First In, First Out), the oldest units are sold first. Under LIFO (Last In, First Out), the newest units are sold first. The choice of method affects reported profit, tax liability, and balance sheet values — especially when purchase costs change over time. This tool lets you compare both methods side by side using your actual purchase batches.
How to Calculate FIFO / LIFO in 3 Steps
Step 1 — Enter Purchase Batches (Oldest First)
Add each purchase batch with the quantity received and cost per unit. Enter batches in chronological order — oldest (first purchased) at the top. FIFO will consume from the top down; LIFO from the bottom up.
Step 2 — Enter Units Sold
Enter the total number of units sold in the period. You can split across multiple sales entries if needed. The total sold must not exceed total units purchased.
Step 3 — Compare COGS Under Both Methods
See COGS (Cost of Goods Sold) and ending inventory value under FIFO, LIFO, or both side by side. Use this for tax planning, financial reporting, or to understand which method is more advantageous for your business.
Who Uses This FIFO/LIFO Calculator?
Accountants & Bookkeepers
Quickly compute COGS under FIFO or LIFO for quarterly or annual financial statements without complex spreadsheet formulas.
E-commerce & Retail Sellers
Understand the true cost of goods sold per period to price products correctly and calculate gross margins.
Small Business Owners
See how different costing methods affect reported profit and tax liability to make informed accounting decisions.
Finance Students
Practice FIFO and LIFO problems with real-time feedback — enter any scenario and instantly see the result.
Frequently Asked Questions
What is FIFO (First In, First Out)?
FIFO assumes the oldest inventory purchased is sold first. When prices are rising, FIFO results in lower COGS (using cheaper old stock) and higher ending inventory value. FIFO is required under IFRS and is the most common method globally.
What is LIFO (Last In, First Out)?
LIFO assumes the most recently purchased inventory is sold first. When prices are rising, LIFO results in higher COGS (using expensive new stock) and lower taxable profit. LIFO is permitted under US GAAP but not under IFRS.
What is COGS?
COGS (Cost of Goods Sold) is the direct cost of the inventory units sold during a period. It appears on the income statement and directly affects gross profit. COGS = Beginning Inventory + Purchases − Ending Inventory.
Which method — FIFO or LIFO — is better?
FIFO gives a more accurate ending inventory value (closer to current market prices) and is accepted worldwide. LIFO can reduce taxable income when prices are rising, but is restricted to US GAAP companies. Consult your accountant for tax-specific advice.
What is ending inventory?
Ending inventory is the value of unsold stock remaining at the end of a period. Under FIFO, it reflects the most recently purchased (and usually most expensive) units. Under LIFO, it reflects the oldest (usually cheapest) units.
Is this FIFO/LIFO calculator free?
Yes, completely free. No account or login required.