# Inventory Valuation Calculator | Free Tool | Commmerce™

> Calculate your stock value using FIFO, LIFO, or weighted average methods.

Canonical: https://commmerce.com/tools/inventory-valuation.html

Free Tool 

# Inventory Valuation Calculator

 

Calculate your stock value using FIFO, LIFO, or weighted average methods.

    

### Add stock lots (purchase batches)

  QtyCost/unit (₹)Label   
 Current stock on hand (units)    

#### Related tools

[Reorder Point](reorder-point-calculator.html)[Inventory Days](inventory-days-calculator.html)[SKU Generator](sku-generator.html)[Inventory Valuation](inventory-valuation.html)  **Disclaimer:** This free tool is provided by Commmerce for general informational and estimation purposes only. Results are indicative and may not reflect your exact figures, current tax rates, courier charges, marketplace fees, or regulatory requirements, which change over time and vary by case. Commmerce makes no warranty as to accuracy or completeness and accepts no liability for any loss or decision made based on this tool. Always verify with a qualified professional (chartered accountant, tax advisor, or the relevant official source such as the GST portal or CBIC) before acting.    

## How the Inventory Valuation Calculator works

 

Inventory valuation puts a rupee value on the stock you still hold, and the method decides which purchase costs are assigned to it. FIFO (First In, First Out) assumes the oldest stock sold first, so remaining stock is valued at the newest costs. LIFO (Last In, First Out) assumes newest stock sold first, so remaining stock carries older costs. Weighted average values all units at one blended cost = total purchase cost / total units purchased.

 

### Worked example

 

You buy 100 units at ₹50 (Jan), 150 at ₹55 (Feb), and 200 at ₹60 (Mar), and 250 units remain. FIFO values them at the latest lots (200 at ₹60 + 50 at ₹55 = ₹14,750). Weighted average cost is ₹56.11/unit (₹25,250 / 450 units), so the 250 units are worth about ₹14,028.

 

## Frequently asked questions

  Which valuation method is allowed under Indian accounting standards?

Indian Accounting Standard (Ind AS 2) and AS 2 permit FIFO and weighted average, but LIFO is not allowed for financial reporting or income tax in India. LIFO here is shown only for comparison.

 Which method should a retailer actually use?

Most Indian retailers use weighted average because it is simple and smooths out price changes, while FIFO suits perishables and dated stock. Pick one and apply it consistently.

 Does valuation method affect my GST?

GST is charged on the actual sale value, not on your inventory valuation method. Valuation mainly affects your closing stock figure, cost of goods sold, and reported profit.

 How often should I revalue my stock?

At minimum at financial year-end for your books, but reviewing monthly helps you spot dead stock, price drift, and cash tied up in inventory.

    

### Commmerce tracks inventory valuation in real-time

 

Stock value updated on every purchase and sale. FIFO, FEFO, and weighted average built in.

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