COGS Calculator
Cost of Goods Sold Calculator
Calculate COGS using the standard inventory formula. Find gross profit and gross margin once COGS is known.
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COGS
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Total cost of goods sold
COGS per Unit
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Average cost per unit
Gross Profit
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Revenue minus COGS
Gross Margin
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% of revenue
COGS Formula
COGS = Beginning Inventory + Purchases − Ending Inventory
COGS represents the direct cost of the goods a business actually sold during a period — not inventory it still holds. This formula works for retailers and manufacturers alike.
What's Included in COGS?
- Raw materials used in production
- Direct labour costs (workers making the product)
- Manufacturing overhead directly tied to production
- Purchase price of goods bought for resale
- Freight-in (cost to bring inventory to your location)
COGS does not include selling expenses, marketing, administrative costs, or rent (unless directly tied to production).