Ending Inventory Calculator

Final Inventory Value Calculator

Input Fields

Beginning inventory

BI

$

Inventory value at the beginning of the period

Net purchases

P

$

Total purchases made during the period

Cost of goods sold (COGS)

COGS

$

Total cost of goods sold during the period

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Ending Inventory

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Ending Inventory Formula

$$\text{Ending Inventory} = (\text{Beginning Inventory} + \text{Net Purchases}) – \text{Cost of Goods Sold}$$

Explanation:
This formula calculates the inventory left at the end of a period after accounting for new purchases and goods sold. It helps in preparing financial statements and managing stock levels effectively.

Ending inventory is a vital figure in preparing balance sheets and income statements. It directly affects the cost of goods sold, gross profit, and taxable income. Regular calculation ensures accurate valuation and planning.

Example Variables:

• Beginning Inventory: $20,000
• Net Purchases: $15,000
• Cost of Goods Sold: $25,000
• Ending Inventory = (20,000 + 15,000) – 25,000 = $10,000

Use Cases:

• Period-end accounting
• Inventory audits
• Tax and profit calculations
• Business forecasting and planning