How to Calculate COGS
What is COGS?
Cost of Goods Sold (COGS) = Opening inventory + Purchases − Closing inventory. Gross profit = Revenue − COGS. Gross margin % = Gross profit / Revenue × 100.
Formula
Step-by-Step Guide
- 1COGS = Opening stock + Purchases − Closing stock
- 2Gross profit = Revenue − COGS
- 3Gross margin = Gross profit / Revenue × 100
Worked Examples
Frequently Asked Questions
What is Cogs?
Cost of Goods Sold (COGS) = Opening inventory + Purchases − Closing inventory. Gross profit = Revenue − COGS
How accurate is the Cogs calculator?
The calculator uses the standard published formula for cogs. Results are accurate to the precision of the inputs you provide. For financial, medical, or legal decisions, always verify with a qualified professional.
What units does the Cogs calculator use?
This calculator works with inches, percentages. You can enter values in the units shown — the calculator handles all conversions internally.
What formula does the Cogs calculator use?
The core formula is: COGS = Opening stock + Purchases − Closing stock. Each step in the calculation is shown so you can verify the result manually.
Ready to calculate? Try the free COGS Calculator
Try it yourself →