Business & Marketing

Cost of Goods Sold Calculator (COGS)

Enter inventory values and purchases for the period, and revenue.

By TheCalcTools Updated Formula checked and tested

Your numbers

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Your results

Cost of goods sold
Cost of goods sold
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Gross profit
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Gross margin
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Inventory turnover
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Cost of Goods Sold Calculator (COGS) by TheCalcTools

How the Cost of Goods Sold Calculator (COGS) works

COGS = beginning inventory + purchases − ending inventory: the cost of the stock that was actually sold. Count freight-in and direct production costs in purchases.

Gross profit is revenue minus COGS; gross margin expresses it as a share of revenue.

The formula

COGS = beginning inventory + purchases − ending inventory

Worked example

Using the default values shown in the calculator:

Beginning inventory$85000
Purchases during the period$240000
Ending inventory$70000
Revenue for the period$410000
  1. 85,000 + 240,000 − 70,000 = $255,000.
  2. Gross profit $155,000, margin 37.8%.

Result:

Cost of goods sold$255,000
Gross profit$155,000
Gross margin37.8%
Inventory turnover3.29

Frequently asked questions

Is COGS tax-deductible?

Generally yes, as a business expense, under the inventory method your tax authority allows (FIFO, average cost and so on).

Sources and further reading

Profit Margin CalculatorEnter revenue and cost to see profit, margin and markup together Inventory Turnover CalculatorHow many times a year do you sell and replace your stock? Markup and Margin CalculatorMarkup and margin are not the same thing Contribution Margin CalculatorEnter the price, variable cost per unit, units sold and fixed costs Break-Even CalculatorWork out the sales volume where profit is exactly zero Selling Price CalculatorSet a margin goal and get the price that delivers it

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This calculator gives estimates for information only. Check important results independently before you rely on them. See our disclaimer.