Cost of Goods Sold Calculator

Calculate the Cost of Goods Sold (COGS) for your business by inputting beginning inventory, purchases, and ending inventory.

Input Parameters

Calculation Results

Calculation Formula

COGS = Beginning Inventory + Purchases - Ending Inventory

Where:
- Beginning Inventory: The value of inventory at the beginning of the period.
- Purchases: The cost of inventory purchased during the period.
- Ending Inventory: The value of inventory at the end of the period.

Result

Cost of Goods Sold (COGS):

Cost of Goods Sold Calculator Calculator Usage Guide

Learn how to use the Cost of Goods Sold Calculator calculator and its working principles

How to Use the Calculator

  1. Enter the value of your Beginning Inventory in the first input field.
  2. Enter the total Purchases made during the period in the second input field.
  3. Enter the value of your Ending Inventory in the third input field.
  4. Click the Calculate button to compute the Cost of Goods Sold (COGS).
  5. The result will be displayed in the COGS field.

Understanding the Formula

The COGS is calculated using the following formula:

COGS = Beginning Inventory + Purchases - Ending Inventory

This formula helps determine the cost of the inventory that was sold during the period, which is essential for calculating gross profit and understanding your business's financial performance.

Example

Suppose you had the following data:

  • Beginning Inventory: $10,000
  • Purchases: $25,000
  • Ending Inventory: $8,000

Using the formula:

COGS = $10,000 + $25,000 - $8,000 = $27,000

In this case, your Cost of Goods Sold would be $27,000.