Stock valuation calculator
Enter your opening stock, purchases and sales. Get the closing stock value and the cost of goods sold by FIFO and by weighted average, side by side — free, no sign-up.
What is stock valuation?
Stock valuation puts a rupee value on the goods you have left at the end of a period. That closing stock goes on your balance sheet, and it decides your cost of goods sold and so your profit.
When you bought the same item at different prices, you need a rule for which cost the remaining stock carries. FIFO and weighted average are the two rules used in India.
How to use this calculator
- Enter the opening stock quantity and its cost per unit.
- Add each purchase (quantity and cost per unit) and each sale (quantity), in date order.
- Switch between FIFO and Weighted average. The other method’s value is shown underneath for comparison.
- Use cost prices without GST. Sales are taken out at cost, not at the selling price.
Which method should a shop use?
Indian accounting standards (AS 2 and Ind AS 2) allow FIFO or weighted average cost. LIFO is not allowed. Pick one method and use it every year, so your profit can be compared from year to year.
When prices are rising, FIFO gives a higher closing stock value and a higher profit; weighted average smooths prices out. Stock is valued at cost or at the price it can be sold for, whichever is lower.
FIFO
First in, first out: what you sell first is what you bought first, so closing stock is valued at the latest purchase costs.
10 @ ₹100 + 20 @ ₹110, sold 15 → 15 left @ ₹110 = ₹1,650Weighted average
After each purchase, cost per unit = total cost ÷ total quantity. Sales go out at that average.
(₹1,000 + ₹2,200) ÷ 30 = ₹106.67 → 15 left = ₹1,600Methods as allowed by AS 2 / Ind AS 2 (Valuation of Inventories). For your books, confirm the method with your CA.
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Every purchase and sale updates stock and its value automatically, with batch, godown and stock reports ready any day — even offline.
Questions
Stock valuation calculator FAQ
What is the difference between FIFO and weighted average?
FIFO assumes the oldest stock is sold first, so the stock left is valued at the latest costs. Weighted average values every unit at the average cost of all the units you have had.
Is LIFO allowed in India?
No. AS 2 and Ind AS 2 allow FIFO or weighted average cost, not LIFO.
Should I include GST in stock value?
No, if you claim input tax credit. Value stock at the cost without GST, because the GST you paid comes back to you as credit.
What is cost of goods sold?
The cost of the stock that went out as sales in the period. Sales minus cost of goods sold is your gross profit.
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