Cost of goods sold calculator

Connect inventory movements to cost of sales, gross profit and inventory turnover.

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Your inputs

Use one currency and a consistent reporting period.

Use figures from the same period and currency.
Include applicable freight/direct costs; deduct purchase returns and discounts.
Use figures from the same period and currency.
Use figures from the same period and currency.

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Your calculation

Enter your figures and select Calculate.

How the calculation works

COGS = beginning inventory + net purchases and direct costs − ending inventory

Use the result as a planning aid. Check the source records and the assumptions before making financial decisions.

Follow inventory through the period

The tool uses beginning inventory plus purchases minus ending inventory to calculate cost of goods sold. Use consistent inventory valuation and period boundaries.

Keep the model in scope

This simplified inventory model does not replace the accounting policies for manufacturing costs, freight, returns or valuation adjustments. For turnover, use average inventory rather than only the ending balance.

Put the numbers to work.

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