Cost of Goods Sold Calculator
Cost of goods sold, or COGS, is what the goods you sold actually cost you. Enter the value of stock at the start and end of a period, plus the purchases made in between.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
COGS is the stock at the start, plus purchases during the period, minus the stock left at the end.
Gross margin is sales minus COGS, divided by sales, times 100. It shows how much of each sale is left after the goods themselves.
Worked example
With $20,000.00 of stock at the start, $45,000.00 bought, and $15,000.00 left at the end, the cost of goods sold is $50,000.00. On $120,000.00 of sales, the gross margin is 58.3%.
Questions
Does COGS include labour?
It depends on the business. Labour that makes the goods is often included, while office and sales pay are operating costs. Follow the method your accounts use.
What if I value stock differently?
Use the same method for the start and the end of the period. Changing it between the two moves the answer for reasons that have nothing to do with sales.
Where do I find the stock values?
They come from your stock count or inventory records, valued at cost, for the same dates.
More like this
- Customer Acquisition Cost CalculatorWhat it costs to win one new customer.
- Restaurant Food Cost Percentage CalculatorShare of a menu price that goes on ingredients.
- Startup Cost CalculatorThe total to have ready before you open.
- Sales Tax CalculatorAdd sales tax to a price, or take it out of a total.
- Net Promoter Score CalculatorPromoter share minus detractor share, from survey counts.
- Markup CalculatorMarkup and margin from cost and selling price.