COGS Calculator — Cost of Goods Sold
Enter your beginning inventory, the cost of goods purchased or produced during the period, and the ending inventory. Add revenue to also see gross profit and gross margin — the core profitability metrics used in every income statement.
Beginning inventory + purchases − ending inventory
44%
gross marginCOGS (56%)
56%
Gross profit (44%)
44%
- 1
Goods available for sale
50,000 + 120,000 = 170,000Beginning inventory plus all purchases or production costs in the period. - 2
Cost of Goods Sold
170,000 − 30,000 = 140,000
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COGS = Beginning Inventory + Purchases − Ending Inventory. Subtracting COGS from Revenue gives Gross Profit; dividing Gross Profit by Revenue gives Gross Margin %. These three numbers sit at the top of every income statement and measure how efficiently a business turns inventory into revenue.
Formula
How this is calculated
Cost of Goods Sold is the direct cost of the inventory sold during an accounting period. It follows from the flow of goods: you start with whatever inventory was on hand at the beginning of the period, add everything purchased or produced, and then subtract whatever is still on hand at the end. The difference is what was sold — and the cost attached to those sold units is COGS.
COGS appears on the income statement immediately below revenue. Subtracting it gives gross profit, which measures how efficiently a business converts goods into revenue before accounting for operating expenses, interest and taxes. Gross margin (gross profit ÷ revenue, expressed as a percentage) lets you compare profitability across businesses of different sizes or across different periods.
This calculator assumes a periodic inventory system where you count physical inventory at the start and end of the period. COGS can vary depending on the inventory costing method (FIFO, LIFO, or weighted average); this calculator does not apply a specific costing method — it uses the totals you provide. If your ending inventory is higher than beginning inventory plus purchases, COGS would be negative, which is impossible; the calculator flags this as an input error.
Mistoqsijiet frekwenti
COGS covers direct costs tied to producing or acquiring goods: raw materials, direct labour, and manufacturing overheads (factory rent, equipment depreciation). It excludes indirect costs like sales, marketing, administrative salaries and interest expense — those fall below gross profit as operating expenses.
Yes. FIFO (first in, first out) assigns the cost of oldest stock to COGS; LIFO (last in, first out) assigns the newest costs; weighted average blends all costs. This calculator uses total figures you provide, so ensure your beginning and ending inventory values already reflect the costing method your business applies.
Gross margins vary widely by industry. Software companies often exceed 70–80%; grocery retail may sit at 20–25%; manufacturing at 30–50%. Compare your margin against industry benchmarks and track it over time to spot trends — a declining margin can signal rising input costs or pricing pressure.
Magħruf ukoll bħala
TG we-Calculate Editorial Team. (2026). COGS Calculator — Cost of Goods Sold [Online calculator]. TG we-Calculate. https://we-calculate.com/mt/calculator/cogs-calculator
TG we-Calculate Editorial Team. "COGS Calculator — Cost of Goods Sold." TG we-Calculate. 2026. https://we-calculate.com/mt/calculator/cogs-calculator.
TG we-Calculate Editorial Team, "COGS Calculator — Cost of Goods Sold," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/mt/calculator/cogs-calculator
@misc{wecalculate_cogs_calculator, title = {COGS Calculator — Cost of Goods Sold}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/mt/calculator/cogs-calculator}}, year = {2026}, note = {TG we-Calculate} }
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