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.
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.