Small business calculator

Cost of Goods Sold (COGS)

Estimate cost of goods sold for a period using beginning inventory, purchases, and ending inventory. Use the same currency and the same inventory valuation method you use in your books.

Inputs

COGS = beginning inventory + purchases − ending inventory.

Inventory value at the start of the period.
Cost of goods purchased or produced in the period (your definition).
Inventory value at the end of the period.
Calculated after you click Calculate.

Results

COGS is what flowed through to cost of sales for the period under this inventory roll-forward.

Example

Beginning inventory is $10,000, purchases are $50,000, and ending inventory is $15,000. COGS = $10,000 + $50,000 − $15,000 = $45,000.

How it works

Cost of goods sold = beginning inventory + purchases − ending inventory. If the result is negative, ending inventory plus cost of goods sold implied exceeds beginning inventory plus purchases—double-check inputs and timing.

Related tools

Profit Calculator, Break-even Calculator, or back to the Small Business calculator list.