Inventory Value Calculator
Calculate a homogeneous stock pool at cost and estimated net realisable value, with separate write-down and holding-cost scenarios.
8 of 8 free uses remaining today
Value one SKU or homogeneous inventory pool from assigned unit cost and estimated net realisable value, with a separate constant-stock holding-cost scenario.
Worked example
Example output from the starting values. Enter your figures and press Calculate for your result.
- Inventory at assigned cost
- 20,000 currency units
- Estimated pool net realisable value
- 18,000 currency units
- Lower-of-cost-and-NRV planning value
- 18,000 currency units
- Indicated planning write-down
- 2,000 currency units
- Annual holding-cost scenario on original cost
- 4,000 currency units/year
- Holding-cost scenario for selected days
- 986.3014 currency units
Calculate your figures to enable a brand-free CSV download.
Formula
Inventory at assigned cost = quantity × assigned unit cost. Estimated pool NRV = quantity × estimated unit NRV. Lower-of-cost-and-NRV planning value = quantity × min(unit cost, unit NRV). Indicated planning write-down = quantity × max(unit cost − unit NRV, 0). Annual holding-cost scenario = original cost balance × entered annual rate ÷ 100. Period holding-cost scenario = annual amount × days ÷ 365, without compounding.
How to use this calculation
1,000 units at assigned cost 20 give 20,000 at cost. Estimated unit NRV of 18 gives an 18,000 lower-of-cost-and-NRV planning value and a 2,000 indicated write-down. Separately, a user-entered 20% annual holding scenario on the original 20,000 cost balance gives 4,000 per year, or about 986.30 for 90/365 of a year. The write-down does not automatically reduce storage expense and is not added to that holding estimate.
- IAS 2 supplies the lower-of-cost-and-NRV basis for ordinary inventories. Use one reporting date, currency and stock-unit basis. This calculator does not determine your cost-assignment method or maintain a stock ledger. Assess different SKUs or differing recovery prospects separately, then aggregate their appropriate values; pooling unrelated NRVs can hide write-downs. Special inventories and other accounting/tax frameworks may have different rules.
- NRV is estimated selling price less completion and selling costs, not gross selling price or guaranteed proceeds. A zero quantity or zero unit cost is valid. The entered inventory NRV must be nonnegative; if net proceeds would be negative, this inventory-only scenario uses zero and any additional disposal or onerous obligations need separate assessment. A previously written-down carrying balance must not be treated as original cost when inferring a new write-down or reversal.
- Holding expenses are a separate user-defined planning estimate on the original cost balance, assuming the same stock stays held throughout the selected days. Actual changing inventory requires a time-weighted value and real costs. The annual rate may exceed 100% and is not silently capped; actual/365 prorating is explicit, not a calendar schedule. Rates may already include obsolescence/risk, so do not automatically add the indicated write-down again. This does not post an accounting entry, establish cash flow or guarantee resale value.
Formula reference: IFRS: IAS 2 inventory cost and net realisable value. General planning information, not a guarantee of business results.
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