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FIFO Calculator for Inventory

Finance Updated October 25, 2026

Quick answer

The FIFO calculator values inventory with the first-in, first-out method: the cost of the oldest purchases is matched to sales first, giving cost of goods sold, ending inventory and gross profit. Switch to LIFO to compare.

$
Units available
—
Total cost of goods available
$ —
Cost of goods sold
$ —
Ending inventory value
$ —
Units left
—
Revenue
$ —
Gross profit
$ —
Weighted average cost per unit
$ —

With rising prices, FIFO gives a lower cost of goods sold and higher profit than LIFO, and an ending inventory close to current prices. FIFO is required under IFRS and is the most common method worldwide. Everything is calculated in your browser, so nothing you type is sent to our server.

How to use the FIFO Calculator for Inventory

  1. Method
  2. Units in each purchase (oldest first)
  3. Cost per unit of each purchase
  4. Units sold
  5. Selling price per unit

Everything runs in your browser, so results appear instantly and nothing you type is sent to a server.

How it works

Enter the units and unit cost of each purchase in date order (separate with commas), the units sold and the selling price.

Tips

  • Use figures for the same period (a month, a quarter or a year) for every input so ratios compare like with like.
  • Track the metric over time – the trend usually tells you more than a single value.
  • Compare your result with industry benchmarks, which vary a lot between sectors.
  • Treat the result as a starting point for a decision, then check the assumptions behind each input.

Common mistakes to avoid

  • Mixing monthly and yearly numbers in the same calculation.
  • Using revenue where the formula needs profit (or the other way round).
  • Forgetting hidden costs such as taxes, fees, overheads or your own time.

Formula

FIFO: units sold are costed from the earliest purchases firstCOGS = Σ (units taken from each lot × lot cost)Ending inventory = total purchases − COGSGross profit = units sold × price − COGS

Worked example

Inputs — Method: FIFO – first in, first out; Units in each purchase (oldest first): 100, 150, 120; Cost per unit of each purchase: 10, 12, 13; Units sold: 260; Selling price per unit: $20.
Results — Units available = 370; Total cost of goods available = $4,360; Cost of goods sold = $2,930; Ending inventory value = $1,430; Units left = 110; Revenue = $5,200.

Frequently asked questions

What is FIFO?

First in, first out – the oldest stock is treated as sold first.

Is FIFO allowed under IFRS?

Yes; LIFO is not allowed under IFRS, only under U.S. GAAP.

Why does FIFO give higher profit when prices rise?

Older, cheaper stock is expensed first, lowering COGS.

What formula does the FIFO Calculator for Inventory use?

FIFO: units sold are costed from the earliest purchases first.

Sources

  1. IFRS – IAS 2 Inventories

Cite this calculator

Speedy Calculator. (2026). FIFO Calculator for Inventory. Speedy Calculator. https://speedycalculator.com/calculators/finance/fifo-inventory/