Cost of Goods Sold Calculator

Calculate COGS from beginning inventory, purchases, ending inventory, and optional freight-in. Optional gross profit if revenue provided.

Use the Cost of Goods Sold Calculator

Enter beginning inventory, purchases, ending inventory. Optionally add freight-in and revenue for gross profit.

Inventory & purchases

Beginning inventory, purchases, ending inventory. Optional: freight-in.

Beginning inventory ($)

Purchases during period ($)

Ending inventory ($)

Freight-in / direct labour ($)

Revenue for period ($, optional)

Results

COGS

$85,000

COGS = Beginning inventory + Purchases + Freight-in − Ending inventory. Only direct costs of goods sold; exclude operating expenses.

What this metric means

COGS is the direct cost of the products or services you sold. Revenue minus COGS is gross profit; the rest of the P&L is operating expenses and below.

How to interpret

Use COGS and gross margin to see product profitability. Compare with prior periods and benchmarks to spot trends and inefficiencies.

FAQs

What belongs in COGS?▾

Direct costs of the goods you sold: materials, direct labour, freight-in. Exclude indirect costs (rent, admin), which are operating expenses.

Why ending inventory?▾

You subtract ending inventory because that stock wasn’t sold in the period. COGS = what you had + what you bought − what’s left.

What is freight-in?▾

Freight-in is the cost to get inventory to you. It’s part of the cost of the goods and is added to purchases in the COGS calculation.

Related tools

Browse all calculators on NetGrow.

Use the Cost of Goods Sold Calculator

Enter beginning inventory, purchases, ending inventory. Optionally add freight-in and revenue for gross profit.

Inventory & purchases

Beginning inventory, purchases, ending inventory. Optional: freight-in.

Beginning inventory ($)

Purchases during period ($)

Ending inventory ($)

Freight-in / direct labour ($)

Revenue for period ($, optional)

Results

COGS

$85,000

COGS = Beginning inventory + Purchases + Freight-in − Ending inventory. Only direct costs of goods sold; exclude operating expenses.

FAQs

What belongs in COGS?▾

Direct costs of the goods you sold: materials, direct labour, freight-in. Exclude indirect costs (rent, admin), which are operating expenses.

Why ending inventory?▾

You subtract ending inventory because that stock wasn’t sold in the period. COGS = what you had + what you bought − what’s left.

What is freight-in?▾

Freight-in is the cost to get inventory to you. It’s part of the cost of the goods and is added to purchases in the COGS calculation.