# Ending Inventory Calculator

URL: https://speedycalculator.com/calculators/finance/ending-inventory/
Last updated: 2026-10-25

> The ending inventory calculator works out inventory at the end of a period from beginning inventory, net purchases and cost of goods sold – or estimates it with the gross profit method from sales and gross margin.

## Inputs

- I know
- Beginning inventory
- Net purchases
- Cost of goods sold
- Net sales
- Gross margin (%)

## Results

- Cost of goods sold used
- Ending inventory
- Cost of goods available for sale
- Inventory turnover

## Formula

```
Ending inventory = beginning inventory + net purchases − COGS
Gross profit method: COGS = sales × (1 − gross margin)
```

## Explanation

The gross profit method is used for interim reports or to estimate inventory lost in a fire or theft. A physical count is still needed for year-end financial statements.

### How to use the Ending Inventory Calculator

- **I know**
- **Beginning inventory**
- **Net purchases**
- **Cost of goods sold**
- **Net sales**
- **Gross margin**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Choose whether you know COGS or want to estimate it from sales and margin, then enter the figures.

### Tips

- Use consistent periods (a year or a quarter) for flow figures and period-end values for balances.
- Average opening and closing balances when a ratio mixes a flow with a stock.
- Benchmark against competitors in the same industry.
- Read the ratio together with others – profitability, liquidity and efficiency tell different stories.

### Common mistakes to avoid

- Using sales instead of cost of goods sold for inventory ratios.
- Mixing gross, operating and net profit.
- Ignoring one-off items that distort a single year.

### Inputs explained

FieldWhat to enterI knowChoose one: Cost of goods sold, Sales and gross marginBeginning inventoryAmount in your currencyNet purchasesAmount in your currencyCost of goods soldAmount in your currencyNet salesAmount in your currencyGross marginIn %

### What each result means

- **Ending inventory** = [Beginning inventory] + [Net purchases] - [Cost of goods sold used]
- **Cost of goods available for sale** = [Beginning inventory] + [Net purchases]
- **Inventory turnover** = [Cost of goods sold used]÷(([Beginning inventory] + [Ending inventory])÷2)

### Example values

How the main result changes when **Beginning inventory** changes and everything else stays at the example values above:

Beginning inventoryEnding inventory40,00050,00060,00070,00080,00090,000100,000110,000120,000130,000160,000170,000

## Worked example

Inputs — I know: Cost of goods sold; Beginning inventory: $80,000; Net purchases: $300,000; Cost of goods sold: $290,000; Net sales: $450,000; Gross margin: 35 %.

Results — Cost of goods sold used = $290,000.00; **Ending inventory = $90,000.00**; Cost of goods available for sale = $380,000.00; Inventory turnover = 3.41.

## FAQ

**How do I calculate ending inventory?**
Beginning inventory + purchases − cost of goods sold.

**What is the gross profit method?**
Estimating COGS (and ending inventory) from sales and the usual gross margin.

**Does the inventory method matter?**
FIFO, LIFO and weighted average give different ending inventory values.

**What formula does the Ending Inventory Calculator use?**
Ending inventory = beginning inventory + net purchases − COGS.


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)