Cost of Goods Sold (COGS) Calculator

About this calculator

Cost of goods sold follows the basic inventory equation: COGS = opening inventory + purchases − closing inventory — whatever inventory you started with, plus what you bought, minus what's left unsold, must be what you sold during the period.

It's the first line subtracted from revenue to get gross profit on every income statement, and retailers and manufacturers track it closely because it directly drives gross margin — a rising COGS relative to revenue, even with sales growing, usually signals supplier price increases, discounting, or inventory shrinkage eating into profitability.