Ending Inventory Calculator
Closing stock from opening, purchases and COGS.
Optional — enter a counted value to see shrinkage.
Ending inventory
$35,000
beginning + purchases − COGS
How the Ending Inventory Calculator works
Ending inventory is opening stock plus what you bought minus what you sold. When the physical count disagrees with that figure, the gap is shrinkage — and quantifying it is the main reason the calculation is worth doing.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is the ending inventory formula?
Beginning inventory + purchases − cost of goods sold. Starting at £30,000, buying £80,000 and selling goods costing £75,000 leaves £35,000 of ending inventory.
Why does my physical count differ?
The difference is shrinkage: theft, damage, miscounting, receiving errors or unrecorded sales. A gap of 1-2% is common in retail. Consistently larger gaps point to a process problem worth investigating.
How do FIFO and LIFO change the figure?
They change which costs are assigned to sold units. With rising prices, FIFO leaves higher-cost stock on the balance sheet and reports higher profit; LIFO does the opposite. LIFO is not permitted under IFRS.
How often should I count physically?
Annually at minimum for accounts. Cycle counting — counting a portion continuously so everything is covered over a period — catches discrepancies far earlier than a single annual count and disrupts trading far less.