LIFO Calculator
Last-in first-out COGS and ending inventory.
Enter your values
comma separated
ⓘ Live results
Results
- Cost of goods sold
- $4,200.00
- Ending inventory
- $1,600.00
- Units remaining
- 150
- Gross profit
- $3,300.00
- Gross margin
- 44%
Working
- 1200 units @ $15.00 = $3,000.00
- 2100 units @ $12.00 = $1,200.00
Quick answer
LIFO assumes the newest inventory sells first, so COGS uses the most recent purchase costs and ending inventory holds the oldest layers.
COGS = newest layers consumed first
How to use the LIFO Calculator
- 1List each purchase quantity oldest to newest.
- 2List the matching unit costs.
- 3Enter units sold and your selling price.
Inputs explained
- Units in each purchase (oldest first)
- comma separated
Worked example
Using the values the calculator loads with:
Inputs
- Units in each purchase (oldest first)100, 150, 200
- Unit cost of each purchase10, 12, 15 $
- Units sold300
- Selling price per unit25 $
Results
- Cost of goods sold$4,200.00
- Ending inventory$1,600.00
- Units remaining150
- Gross profit$3,300.00
- Gross margin44%
- 200 units @ $15.00 = $3,000.00
- 100 units @ $12.00 = $1,200.00
Frequently asked questions
When does LIFO lower taxes?
In periods of rising costs — newer, higher costs go to COGS, cutting reported profit and tax.
Is LIFO allowed under IFRS?
No. LIFO is permitted under US GAAP but banned under IFRS, so international filers use FIFO or weighted average.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.