Free online calculator
COGS Calculator
Estimate cost of goods sold using opening inventory, purchases and closing inventory, all valued at cost for the same period..
Formula: COGS = beginning inventory + purchases − ending inventory
How to use the COGS Calculator
Estimate cost of goods sold using opening inventory, purchases and closing inventory, all valued at cost for the same period.
Formula
COGS = beginning inventory + purchases − ending inventory.
Worked example
Opening inventory of $5,000 plus $12,000 purchases minus $4,000 closing inventory gives $13,000 COGS.
Interpretation and limitations
Use inventory cost, not retail selling prices. Include applicable adjustments consistently with your records. A negative output usually signals mismatched periods, valuation or omitted inventory movements.
COGS questions
Should I enter retail inventory value?
No. Mixing retail value with purchase costs makes the calculation inconsistent.
Does this include salaries and rent?
Not automatically. Enter inventory-related amounts according to your accounting method; general operating expenses are usually tracked separately.
Continue your calculation
For the next step, use the Gross Profit Calculator or the Inventory Turnover Calculator. Review each tool’s input definitions before carrying a result into another calculation.
Frequently asked questions
Is this calculator free?
Yes. It runs in your browser and does not require an account.
How should I use the result?
Use the result as a planning estimate and verify business-critical decisions against your source records.