Calculate average inventory
Beginning inventory
Ending inventory
2
Average inventory
Average inventory = (Beginning inventory + Ending inventory) ÷ 2
Average inventory estimates the typical inventory value held during the period.
Inventory calculator
Average Inventory Calculator
Use this free average inventory calculator to estimate the average value of inventory held during a period. Enter beginning inventory and ending inventory to calculate average inventory. It is useful for inventory turnover, stock planning, purchasing, and performance analysis.
Average inventory
17,000
Result overview
Beginning inventory
20,000
Ending inventory
14,000
2
2
Average inventory
17,000
How to calculate average inventory
Average inventory estimates the typical value of stock held during a period. It is commonly used with COGS to calculate inventory turnover and understand how much capital is tied up in stock.
How to use this calculator
- Enter the inventory value at the beginning of the period
- Enter the inventory value at the end of the period
- Review the average inventory value
- Use the result for turnover, purchasing, or stock analysis
Examples
Example 1
- Beginning inventory
- 20,000
- Ending inventory
- 14,000
- Average inventory
- 17,000
Example 2
- Beginning inventory
- 12,500
- Ending inventory
- 9,000
- Average inventory
- 10,750
Tips
Use the same valuation method for beginning and ending inventory.
Use the same period when comparing average inventory with COGS.
Average inventory is an estimate, not a live stock count.
Compare average inventory across periods to spot overstocking.
Use average inventory with inventory turnover for better insight.
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