Inventory Value Calculator
Stock value at cost and at retail.
Inventory value at cost
$43,200
$108,000 at retail
Balance sheets use cost, at the lower of cost and net realisable value. Retail value always overstates what will actually be realised after markdowns.
How the Inventory Value Calculator works
Inventory has two values, and confusing them causes real problems. Cost value is what you paid and what appears on your balance sheet. Retail value is what it would fetch if it all sold at full price, which it will not. Accounting uses cost; planning needs both.
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
Should inventory be valued at cost or retail?
At cost for accounting — specifically the lower of cost and net realisable value. Retail value is a planning figure showing the revenue potential in stock, and it always overstates what will actually be realised after markdowns.
What is the retail method of inventory valuation?
Estimating cost value from retail value using the cost-to-retail ratio. It suits businesses with large mixed catalogues where counting at cost is impractical, at the price of some precision.
Does inventory value include freight?
Inbound freight, duty and handling to get goods to you belong in the cost, since they are part of what the stock cost. Outbound shipping to customers is a selling expense and does not.
What is net realisable value?
Expected selling price minus the costs of completing and selling it. Where that falls below cost — for damaged, obsolete or heavily discounted stock — accounting standards require writing inventory down to the lower figure.