Free tool
Cost of goods sold calculator
Enter your inventory at the start of the period, what you bought, and what is left at the end. See your cost of goods sold, and your gross profit if you add your sales.
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How it works
How it works
The formula is beginning inventory + purchases + freight in + direct labor - ending inventory. The first four are everything you had available to sell. Subtract what is still on the shelf, and the rest is the cost of what you sold.
Add your sales for the same period to see gross profit and gross margin. Nothing you type is sent or saved.
FAQ
About this calculator
What is cost of goods sold?
COGS is the direct cost of the products you sold in a period: the inventory you started with plus what you bought and the direct costs to get it ready, minus what is left at the end.
What goes into COGS?
Inventory purchases, freight in, and direct labor or materials for items you make. Selling costs, rent for an office, advertising and most overhead are separate expenses. Methods vary, so ask your preparer.
Do service businesses have COGS?
Some track direct costs of delivering a service, such as subcontractors or materials, in a similar way. Many service businesses simply have no inventory.
How does COGS affect my taxes?
It reduces your gross profit, so a more accurate COGS gives a more accurate taxable profit. Counting inventory at the start and end of the year is what makes it right.
What if ending inventory is higher than what I had available?
Then something is wrong with the count or you left out a purchase. The calculator warns you.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Price for a target margin with the margin and markup calculator, check how fast you sell through stock with the inventory turnover calculator, or track profit by channel in the Sales-Channel Profit Tracker. More free tools: Debt Payoff Planner Python script, Home and Car Cost Python script, MCC Personal Finance Suite, or see all free tools.
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