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Cost Of Goods Sold Calculator

Work out cost of goods sold instantly with clear inputs, formula shown and shareable results.

About Cost Of Goods Sold Calculator

COGS is derived from the inventory identity: what you started with, plus what you bought or made, less what is still on the shelf. Because the closing figure feeds straight into gross profit, an inventory count error moves reported profit one-for-one.

Formulas

Cost of goods sold

COGS = Opening inventory + Purchases - Closing inventory

Inventory turnover

Turnover = COGS / Average inventory

Worked example

With the default values below, Cost Of Goods Sold Calculator returns Cost of goods sold of $515,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Opening inventory
120,000
Purchases and direct production cost
540,000
Closing inventory
145,000
Revenue for the period
890,000

Results

Cost of goods sold
$515,000.00
Gross profit
$375,000.00
Gross margin
42.13%
Inventory turnover (times)
3.89

Step by step

  1. 1Values used
  2. 2Cost of goods sold
  3. 3Inventory turnover
  4. 4Cost of goods sold= 515,000.00
  5. 5Gross profit= 375,000.00
  6. 6Gross margin= 42.13
  7. 7Inventory turnover (times)= 3.89

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or tax into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

What belongs in purchases?

Goods bought for resale plus direct materials, inbound freight, duty and direct production labour. Selling and admin costs do not.

Why does turnover matter here?

It converts the same numbers into a working-capital view: how many times a year you sell through your average stockholding.

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