Cost Of Goods Sold (COGS) Calculator
Determines total direct costs incurred to produce and sell goods or services
Value of inventory at the start of the period
Total inventory purchased during the period
Value of inventory remaining at end of period
Enter all inventory values to calculate COGS
Frequently Asked Questions
What is cost of goods sold (COGS)?
COGS is the total direct cost of producing or purchasing the goods a business sells. It includes raw materials, direct labor, and manufacturing overhead. It does not include indirect expenses like marketing or rent.
How do I calculate COGS?
COGS = Beginning Inventory + Purchases During Period - Ending Inventory. For example, if you started with $5,000 in inventory, bought $3,000 more, and ended with $2,000, your COGS is $6,000.
Why does COGS matter?
COGS directly affects your gross profit and tax liability. Accurately tracking COGS helps you price products correctly, identify cost reduction opportunities, and report accurate financials on your tax return.
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