Cost of Goods Sold Calculator

Cost of Goods Sold Calculator or COGS calculator to calculate the cost of goods sold. COGS also known as cost of sales is the direct costs of producing products that were sold. The cost of goods sold formula is given below to show you how to calculate COGS.

Cost of Goods Sold Formula

Following is the COGS formula on how to calculate cost of goods sold.

Cost of Goods Sold = Beginning Inventory + Purchases - Ending Inventory

For example, if a business has a beginning inventory worth of $200,000 and ending inventory of $50,000 with new purchases of $300,000, the cost of goods sold can be solve with the above COGS formula.

COGS = $200,000 + $300,000 - $50,000 = $450,000