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Finance Calculators
Cost of Goods Sold (COGS) Calculator
Calculate cost of goods sold (COGS) from beginning inventory, purchases made during the period, and ending inventory.
Cost of goods sold
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About the Cost of Goods Sold (COGS) Calculator
Cost of goods sold (COGS) is the direct cost of producing or purchasing the inventory a business actually sold during a period — it excludes indirect costs like marketing, rent or administrative salaries.
Formula: COGS = Beginning Inventory + Purchases − Ending Inventory
COGS is the key input for calculating gross profit and gross margin, and it directly affects taxable income, since it's deducted from revenue before operating expenses are considered.
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