FIFO Calculator for Inventory

Calculate FIFO COGS and ending inventory from layers and quantity sold. First-in, first-out allocation.

Use the FIFO Calculator for Inventory

Add inventory layers (quantity and unit cost) in chronological order, then enter quantity sold. FIFO COGS and ending inventory are calculated.

Inventory layers (FIFO: oldest first)

Add rows: quantity purchased and unit cost. Order = oldest first. Then enter quantity sold.

Quantity sold / used

Round to 2 decimals

Results

FIFO COGS

$2,200

Ending inventory value

$600

Layer	Qty used	Unit cost	COGS	Qty left
1	100	$10	$1,000	0
2	100	$12	$1,200	50
3	0	$11	$0	80

FIFO allocates sold quantity to oldest layers first. COGS = sum of (allocated qty × layer unit cost).

What this metric means

FIFO values cost of goods sold using the cost of the earliest purchases first. Ending inventory is valued at the cost of the most recent purchases remaining.

How to calculate it

Order layers from oldest to newest. Allocate quantity sold to the first layer until it's exhausted, then the next, and so on. COGS = Σ(allocated qty × layer unit cost).

How to improve the metric

FIFO is a reporting method, not a lever. To improve margins, focus on buying cost, mix, and pricing rather than changing the costing method.

Common mistakes

Layers in wrong order (newest first); including negative quantities; or using selling price instead of cost in layers. Keep units and currency consistent.

How to interpret your result

Use COGS for P&L and ending inventory for the balance sheet. Compare to other methods (e.g. LIFO, average) if you're evaluating reporting choices.

FAQs

What is FIFO?▾

First-in, first-out: you assume the oldest inventory is sold first. COGS is calculated by allocating quantity sold to the oldest layers first at each layer's unit cost.

How do I set up layers?▾

Add rows in order of purchase (oldest first). Each row has quantity and unit cost. The calculator allocates sold quantity to these layers in order.

What's ending inventory?▾

The value of remaining units after the sale, using the same layer costs. Any quantity not allocated from a layer stays in ending inventory at that layer's cost.

FIFO vs LIFO?▾

FIFO uses oldest cost first; LIFO uses newest. In rising prices, FIFO gives lower COGS and higher ending inventory than LIFO. Use the method your reporting requires.

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Use the FIFO Calculator for Inventory

Add inventory layers (quantity and unit cost) in chronological order, then enter quantity sold. FIFO COGS and ending inventory are calculated.

Inventory layers (FIFO: oldest first)

Add rows: quantity purchased and unit cost. Order = oldest first. Then enter quantity sold.

Quantity sold / used

Round to 2 decimals

Results

FIFO COGS

$2,200

Ending inventory value

$600

Layer	Qty used	Unit cost	COGS	Qty left
1	100	$10	$1,000	0
2	100	$12	$1,200	50
3	0	$11	$0	80

FIFO allocates sold quantity to oldest layers first. COGS = sum of (allocated qty × layer unit cost).

FAQs

What is FIFO?▾

First-in, first-out: you assume the oldest inventory is sold first. COGS is calculated by allocating quantity sold to the oldest layers first at each layer's unit cost.

How do I set up layers?▾

Add rows in order of purchase (oldest first). Each row has quantity and unit cost. The calculator allocates sold quantity to these layers in order.

What's ending inventory?▾

The value of remaining units after the sale, using the same layer costs. Any quantity not allocated from a layer stays in ending inventory at that layer's cost.

FIFO vs LIFO?▾

FIFO uses oldest cost first; LIFO uses newest. In rising prices, FIFO gives lower COGS and higher ending inventory than LIFO. Use the method your reporting requires.