Finance

COGS Calculator (Cost of Goods Sold)

Calculate your Cost of Goods Sold to determine gross profit and gross margin.

Beginning Inventory ($)

Purchases During Period ($)

Ending Inventory ($)

Direct Labor Costs ($)

Freight / Shipping In ($)

Total Revenue ($)

Formula:
COGS = Beginning Inventory + Purchases + Direct Labor + Freight − Ending Inventory
Gross Profit = Revenue − COGS
Gross Margin = Gross Profit / Revenue × 100

What is Cost of Goods Sold?

COGS represents the direct costs attributable to producing goods sold by a company. It includes raw materials, direct labor, and manufacturing overhead directly tied to production. It excludes indirect expenses like distribution and sales costs.

What's Included in COGS

Raw materials and components
Direct labor (production workers)
Manufacturing overhead (factory rent, utilities)
Freight-in costs

What's NOT Included

Sales and marketing expenses
Administrative overhead
Distribution and shipping to customers
Research and development