Cost of Goods Sold Calculator
Add purchases to beginning inventory and subtract ending inventory to find the cost of goods sold during the period.
- Free
- No sign-up
Enter beginning inventory, purchases and ending inventory to see COGS.
Worked example
With these example inputs:
- Beginning inventory$80,000
- Purchases$300,000
- Ending inventory$70,000
Cost of goods sold: $310,000
- Largest component, as a share66.67%
- Average component$150,000
- If the first figure were 10% higher$340,000
Frequently asked questions
How is cost of goods sold calculated?
Add purchases to beginning inventory, then subtract ending inventory. $80,000 plus $300,000 less $70,000 gives $310,000.
How does COGS relate to gross profit?
Gross profit is revenue minus cost of goods sold. A lower COGS for the same sales means a higher gross profit and a stronger gross margin.