COGS Calculator

COGS is the direct cost of what you sold this period. The classic inventory formula — beginning inventory plus purchases minus ending inventory — is what accountants use, and it's the foundation of every margin calculation.

Inputs

Beginning inventory

Inventory value at the start of the period.

Purchases during period

New stock bought or produced, incl. inbound freight.

Ending inventory

Revenue (optional)

If set, shows COGS as % of revenue.

Results

COGS

$15,500

Gross profit: $16,500
COGS as % of revenue: 48.0%
Gross margin: 52.0%

Formula

COGS = Beginning Inventory + Purchases − Ending Inventory

FAQ

Which valuation should I use for inventory?

Use your cost basis (what you paid), not retail value, and stay consistent with one method (FIFO, average cost, etc.).

Does this match my tax COGS?

The formula matches the standard approach, but tax rules on what can be included vary by jurisdiction — confirm with an accountant for filings.