Ending Inventory Calculator — Closing Stock & Inventory Turnover
Find the value of inventory remaining at the end of a period plus inventory turnover and days in inventory — using the fundamental accounting identity: Ending Inventory = Beginning Inventory + Purchases − COGS.
Beginning inventory + Purchases − COGS (balance sheet current asset)
170,000
AvailableEnding inventory
41.2%
Cost of goods sold
58.8%
- 1
Goods available for sale
50,000 + 120,000 = 170,000Beginning inventory plus all net purchases and production during the period. - 2
Ending inventory
170,000 − 100,000 = 70,000Goods available minus what was sold (COGS) equals the closing stock.
How does this calculator work?
Ending Inventory = Beginning Inventory + Net Purchases − COGS. Goods available for sale = beginning + purchases; what was not sold remains as ending inventory on the balance sheet. Inventory turnover = COGS ÷ ((beginning + ending) ÷ 2); days inventory outstanding = 365 ÷ turnover. The formula works for FIFO, LIFO and weighted average — use whatever COGS your system reports.
Formula
How this is calculated
Ending inventory (closing stock) follows directly from the cost-flow identity: goods available for sale equals beginning inventory plus net purchases made during the period. Subtracting the cost of goods actually sold leaves what is unsold and still on hand. The result appears as a current asset on the balance sheet at the period end date and becomes the beginning inventory for the next period.
This approach works for any inventory costing method — FIFO (first in, first out), LIFO (last in, first out) or weighted average — because it operates at the total-cost level rather than tracking individual cost layers. FIFO, LIFO and weighted average differ in which cost layers they assign to COGS versus ending inventory. Whatever COGS your accounting system reports under the chosen method is the figure to enter here. For unit-level costing with specific lots, you would use a perpetual inventory ledger instead.
Inventory turnover = COGS ÷ average inventory (where average = (beginning + ending) ÷ 2) measures how many times the full inventory was sold and replaced during the period. Days inventory outstanding (DIO) = 365 ÷ turnover converts that to an average number of days goods sit in stock before being sold. High turnover / low DIO suggests lean, fast-moving inventory; low turnover can indicate overstocking, slow sales, or obsolescence — or may simply reflect the nature of the industry (e.g. jewellery turns slowly by design).
Frequently asked questions
All three give the same total goods available; they differ in how that total is split between COGS and ending inventory. FIFO assigns oldest costs to COGS, so ending inventory reflects recent (often higher) prices — a larger ending balance in inflationary times. LIFO does the opposite — higher COGS, lower ending inventory. Weighted average spreads all costs evenly. Note: LIFO is not permitted under IFRS, only under US GAAP.
No — it would mean you sold goods you did not own, which indicates an accounting error. Common causes are missing purchase invoices, incorrectly recorded COGS (including overheads beyond direct product cost), or a timing mismatch between when goods are received and recorded. This calculator flags that situation and asks you to review the inputs.
It varies significantly by industry. Grocery retail might turn 15–25× per year (DIO of 15–25 days); heavy machinery might turn 2–4× (DIO of 90–180 days). Rather than chasing a universal benchmark, compare your ratio to industry peers and track year-over-year trends — a sudden drop in turnover often signals demand slowdown or excess purchasing.
Also known as
TG we-Calculate Editorial Team. (2026). Ending Inventory Calculator — Closing Stock & Inventory Turnover [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/ending-inventory-calculator
TG we-Calculate Editorial Team. "Ending Inventory Calculator — Closing Stock & Inventory Turnover." TG we-Calculate. 2026. https://we-calculate.com/calculator/ending-inventory-calculator.
TG we-Calculate Editorial Team, "Ending Inventory Calculator — Closing Stock & Inventory Turnover," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/ending-inventory-calculator
@misc{wecalculate_ending_inventory_calculator, title = {Ending Inventory Calculator — Closing Stock & Inventory Turnover}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/ending-inventory-calculator}}, year = {2026}, note = {TG we-Calculate} }
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