Cost of Goods Sold Calculator
Calculate your COGS in seconds. Understand exactly what it costs to sell your products.
Enter Your Inventory Values
Value of inventory at the start of the period
Total cost of inventory purchased during the period
Value of inventory at the end of the period
Your COGS Results
$0.00
Opening Inventory + Purchases
$0.00
COGS Formula
Understanding the COGS Calculation
Opening Inventory
What you started with
Purchases
What you bought
Closing Inventory
What you have left
COGS
What you sold
COGS Example: Gas Station
This gas station spent $183,000 on the fuel they sold in January. If they had $200,000 in fuel sales, their gross profit would be $17,000.
Track COGS Automatically Every Day
Stop calculating manually. InsightDash tracks your COGS, margins, and profits automatically from your daily sales data.
Frequently Asked Questions
What is Cost of Goods Sold (COGS)?
Cost of Goods Sold (COGS) is the direct cost of producing or purchasing the goods that a company sells. It includes the cost of materials and labor directly used to create the product, but excludes indirect expenses like distribution and sales force costs.
How do you calculate COGS?
COGS is calculated using the formula: COGS = Opening Inventory + Purchases - Closing Inventory. This gives you the cost of all goods that were sold during the period.
Why is COGS important for my business?
COGS is crucial because it directly affects your gross profit and gross margin. Lower COGS means higher profits. It also helps you understand your pricing strategy, inventory management efficiency, and overall business health.
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