Weighted Cost Average Calculator for Clear Inventory Pricing Decisions
This weighted cost average calculator delivers instant weighted average unit cost calculations so inventory managers, accountants, and finance leaders can price stock accurately, avoid margin surprises, and document the weighted cost average calculator workflow.
Weighted Cost Average Calculator
Enter your purchase batches to see the weighted cost average calculator compute the weighted average unit cost, total cost, and unit mix in real time.
Units purchased in batch 1
Unit purchase price for batch 1
Units purchased in batch 2
Unit purchase price for batch 2
Units purchased in batch 3
Unit purchase price for batch 3
Weighted Cost Average Calculator Result Live
$0.00 per unit
Formula: Weighted Average Cost per Unit = (Sum of Units × Unit Cost) ÷ Total Units
Total Units: 0
Total Cost: $0.00
Weighted Average Cost per Unit: $0.00
Batch
Units
Cost per Unit ($)
Batch Cost ($)
Cost Share (%)
Table: Weighted cost average calculator breakdown by batch with unit mix and cost share.
Batch Cost per UnitCumulative Weighted Cost Average
Chart: Weighted cost average calculator visual showing batch costs versus cumulative weighted cost average.
What is a Weighted Cost Average Calculator?
The weighted cost average calculator is a financial tool that blends multiple purchase prices into one reliable weighted average cost per unit. A weighted cost average calculator helps inventory managers smooth volatile purchase prices so margins stay predictable. Businesses that buy the same item at different prices use the weighted cost average calculator to set consistent selling prices and defend cost-of-goods figures. The weighted cost average calculator also reduces the noise of sporadic deals by assigning weight to each batch. Common misconceptions include thinking the weighted cost average calculator is only for accountants; in reality, sales, supply chain, and FP&A teams all benefit from the weighted cost average calculator because it stabilizes pricing decisions.
Weighted Cost Average Calculator Formula and Mathematical Explanation
The weighted cost average calculator multiplies each batch's units by its unit cost, sums the total cost, and divides by total units. This weighted cost average calculator approach allocates heavier influence to larger batches. Step by step, the weighted cost average calculator first checks valid quantities, then computes total units, then total extended cost, and finally the weighted average cost per unit.
Formula Steps
1) For each batch, Extended Cost = Units × Cost per Unit. 2) Total Units = Sum of Units across all batches. 3) Total Cost = Sum of Extended Costs. 4) Weighted Average Cost per Unit = Total Cost ÷ Total Units. The weighted cost average calculator implements this sequence in real time.
Variable
Meaning
Unit
Typical Range
Units
Quantity purchased per batch
Units
10 – 100,000
Cost
Purchase price per unit
$
$0.10 – $5,000
Total Units
Aggregate of all units
Units
100 – 1,000,000
Total Cost
Sum of extended batch costs
$
$1,000 – $10,000,000
Weighted Average Cost
Blended cost per unit
$
$0.10 – $5,000
Variables table for the weighted cost average calculator showing definitions and ranges.
Practical Examples (Real-World Use Cases)
Example 1: A retailer uses the weighted cost average calculator after buying 500 units at $12, 700 units at $11.40, and 800 units at $10.90. The weighted cost average calculator yields a weighted average cost per unit near $11.36, letting the retailer set a stable markup without overpricing the most recent shipment.
Example 2: A manufacturer applies the weighted cost average calculator for raw materials: 2,000 units at $4.20, 1,500 units at $4.80, and 1,200 units at $3.90. The weighted cost average calculator blends costs to $4.32, keeping standard costs aligned with actual purchase mix and supporting accurate margin forecasts.
How to Use This Weighted Cost Average Calculator
Step 1: Enter units and cost per unit for each batch in the weighted cost average calculator fields. Step 2: Watch results update automatically. Step 3: Review total units, total cost, and the main weighted average cost per unit. Step 4: Use the Copy Results button to document outputs from the weighted cost average calculator. Step 5: Adjust batches to test pricing scenarios inside the weighted cost average calculator and decide on selling prices or standard cost updates.
Reading results: The main weighted cost average calculator result shows the blended unit cost. Intermediate values reveal whether one expensive batch dominates. Use this to choose price floors, reorder timing, or to explain COGS variances grounded in the weighted cost average calculator evidence.
For more financial models, see {related_keywords} and apply the same disciplined approach you use inside this weighted cost average calculator.
Key Factors That Affect Weighted Cost Average Calculator Results
Purchase volume mix: Larger batches pull the weighted cost average calculator downward or upward faster.
Supplier pricing swings: Volatility in quotes changes the weighted cost average calculator outcome and margin planning.
Timing of buys: Clustering purchases at high prices skews the weighted cost average calculator until cheaper batches arrive.
Carrying costs and fees: Add-on freight or surcharges should be included so the weighted cost average calculator reflects true landed cost.
Currency shifts: FX movement alters per-unit cost inputs and ripples through the weighted cost average calculator.
Discount structures: Volume rebates lower effective unit cost; include them to keep the weighted cost average calculator precise.
Taxes and duties: Apply statutory charges so the weighted cost average calculator mirrors actual payable cost.
Quality or scrap rates: If some units are unusable, adjust units so the weighted cost average calculator represents sellable inventory.
For deeper planning, reference {related_keywords} and align it with insights from the weighted cost average calculator.
Frequently Asked Questions (FAQ)
Does the weighted cost average calculator work with zero units? No, the weighted cost average calculator requires at least one valid unit to avoid division by zero.
Can I include freight? Yes, add freight into cost per unit so the weighted cost average calculator outputs landed cost.
How often should I update? Update the weighted cost average calculator after every purchase to keep pricing current.
Is this the same as FIFO? No, the weighted cost average calculator blends costs, while FIFO tracks chronological layers.
Can I use it for services? If service hours have different rates, the weighted cost average calculator still applies to average billable rates.
What if a batch is returned? Remove those units and costs so the weighted cost average calculator resets accurately.
Does it handle negative costs? Avoid negative inputs; the weighted cost average calculator validates against them.
How does it help margin planning? The weighted cost average calculator sets a dependable baseline cost, making markup targets clearer.
Explore related workflows via {related_keywords} to extend the weighted cost average calculator insights.
Related Tools and Internal Resources
{related_keywords} – A complementary resource to pair with this weighted cost average calculator.
{related_keywords} – Use alongside the weighted cost average calculator for pricing governance.
{related_keywords} – Strengthen cost controls guided by the weighted cost average calculator outputs.
{related_keywords} – Scenario testing that fits the weighted cost average calculator methodology.
{related_keywords} – Documentation support for results from the weighted cost average calculator.
{related_keywords} – Training material to standardize use of the weighted cost average calculator.
var defaultValues = {units1:500,cost1:12.00,units2:700,cost2:11.40,units3:800,cost3:10.90};
function resetCalculator(){
document.getElementById("units1").value=defaultValues.units1;
document.getElementById("cost1").value=defaultValues.cost1.toFixed(2);
document.getElementById("units2").value=defaultValues.units2;
document.getElementById("cost2").value=defaultValues.cost2.toFixed(2);
document.getElementById("units3").value=defaultValues.units3;
document.getElementById("cost3″).value=defaultValues.cost3.toFixed(2);
calculateWAC();
}
function validateInput(val,allowZero){
if(val===""||isNaN(val)){return {valid:false,msg:"Required numeric value"};}
if(!allowZero&&parseFloat(val)===0){return {valid:false,msg:"Value cannot be zero"};}
if(parseFloat(val)<0){return {valid:false,msg:"Value cannot be negative"};}
return {valid:true,msg:""};
}
function calculateWAC(){
var units=[document.getElementById("units1").value,document.getElementById("units2").value,document.getElementById("units3").value];
var costs=[document.getElementById("cost1").value,document.getElementById("cost2").value,document.getElementById("cost3").value];
var totalUnits=0;
var totalCost=0;
var tableHTML="";
for(var i=0;i0){
var batchCost=uVal*cVal;
totalUnits+=uVal;
totalCost+=batchCost;
}
}
for(var j=0;j0&&totalCost>0){
batchTotal=validUnits*validCost;
share=((batchTotal/totalCost)*100).toFixed(2)+"%";
}
var row="
Batch "+(j+1)+"
"+(isNaN(validUnits)?0:validUnits)+"
$"+(isNaN(validCost)?0:validCost.toFixed(2))+"
$"+batchTotal.toFixed(2)+"
"+share+"
";
tableHTML+=row;
}
document.getElementById("tableBody").innerHTML=tableHTML;
var weightedCost=0;
if(totalUnits>0){weightedCost=totalCost/totalUnits;}
document.getElementById("mainResult").innerText="$"+weightedCost.toFixed(4)+" per unit";
document.getElementById("intTotalUnits").innerText="Total Units: "+totalUnits.toFixed(2);
document.getElementById("intTotalCost").innerText="Total Cost: $"+totalCost.toFixed(2);
document.getElementById("intWeightedCost").innerText="Weighted Average Cost per Unit: $"+weightedCost.toFixed(4);
drawChart(costs,weightedCost);
}
function drawChart(costs,weighted){
var canvas=document.getElementById("wacChart");
var ctx=canvas.getContext("2d");
ctx.clearRect(0,0,canvas.width,canvas.height);
var values=[];
var cumValues=[];
var cumulative=0;
var count=0;
for(var i=0;i0){
values.push(c);
count++;
cumulative=((cumulative*(count-1))+c)/count;
cumValues.push(cumulative);
}else{
values.push(0);
cumValues.push(cumulative);
}
}
var maxVal=0;
for(var m=0;mmaxVal){maxVal=values[m];}
if(cumValues[m]>maxVal){maxVal=cumValues[m];}
}
if(maxVal===0){maxVal=1;}
var padding=50;
var chartWidth=canvas.width-2*padding;
var chartHeight=canvas.height-2*padding;
ctx.strokeStyle="#dee3eb";
ctx.lineWidth=1;
for(var g=0;g<=5;g++){
var y=padding+g*(chartHeight/5);
ctx.beginPath();
ctx.moveTo(padding,y);
ctx.lineTo(padding+chartWidth,y);
ctx.stroke();
var label=Math.round((maxVal-(maxVal/5)*g)*100)/100;
ctx.fillStyle="#6c757d";
ctx.font="12px Arial";
ctx.fillText("$"+label,padding-40,y+4);
}
function drawSeries(data,color){
ctx.beginPath();
for(var k=0;k<data.length;k++){
var x=padding+(chartWidth/(data.length-1))*k;
var y=padding+chartHeight-(data[k]/maxVal)*chartHeight;
if(k===0){ctx.moveTo(x,y);}else{ctx.lineTo(x,y);}
ctx.arc(x,y,0,0,Math.PI*2);
}
ctx.strokeStyle=color;
ctx.lineWidth=3;
ctx.stroke();
for(var p=0;p<data.length;p++){
var x2=padding+(chartWidth/(data.length-1))*p;
var y2=padding+chartHeight-(data[p]/maxVal)*chartHeight;
ctx.fillStyle=color;
ctx.beginPath();
ctx.arc(x2,y2,5,0,Math.PI*2);
ctx.fill();
}
}
drawSeries(values,"#004a99");
drawSeries(cumValues,"#28a745");
ctx.fillStyle="#6c757d";
ctx.font="12px Arial";
ctx.fillText("B1",padding,canvas.height-padding+14);
ctx.fillText("B2",padding+chartWidth/2,canvas.height-padding+14);
ctx.fillText("B3",padding+chartWidth,canvas.height-padding+14);
}
function copyResults(){
var totalUnits=document.getElementById("intTotalUnits").innerText;
var totalCost=document.getElementById("intTotalCost").innerText;
var weighted=document.getElementById("intWeightedCost").innerText;
var main=document.getElementById("mainResult").innerText;
var assumptions="Batches: "+document.getElementById("units1").value+"u@$"+parseFloat(document.getElementById("cost1").value||0).toFixed(2)+", "+document.getElementById("units2").value+"u@$"+parseFloat(document.getElementById("cost2").value||0).toFixed(2)+", "+document.getElementById("units3").value+"u@$"+parseFloat(document.getElementById("cost3").value||0).toFixed(2);
var text="Weighted Cost Average Calculator Results\n"+main+"\n"+totalUnits+"\n"+totalCost+"\n"+weighted+"\nAssumptions: "+assumptions;
if(navigator.clipboard&&navigator.clipboard.writeText){navigator.clipboard.writeText(text);}
}
calculateWAC();