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Cost of Goods Sold Calculator

Reconcile beginning inventory, net purchases and ending inventory to estimate period COGS and gross profit.

Your numbers

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Updates as you type
Cost of goods sold
$32,000.00

USD · rounded to the nearest cent

Goods available for sale$40,000.00
Gross profit$18,000.00
Gross margin36%

Use inventory costs, not selling prices. Purchases should include the relevant net acquisition costs for the same period. Returns, manufacturing adjustments and accounting methods need appropriate inputs.

Your calculation, step by step

No black boxes
  1. COGS = 10000 + 30000 − 8000.

What if things were different?

Save up to three scenarios, then change your inputs to compare the possibilities.

How to use this calculator

  1. Enter your own values in the labeled fields. Check the units and assumptions before comparing results. Only the fields needed for your selected calculation mode are shown.
  2. Your answer updates automatically. Review the calculation steps to see exactly how it was calculated.
  3. Copy, share, save, or download your result. Saved inputs stay on this device.

How the calculation works

COGS = beginning inventory + net purchases − ending inventory

Use cost values, not retail selling prices, for inventory. Purchases should be net of relevant returns and include the acquisition costs appropriate to your records. The simplified reconciliation does not replace inventory valuation or manufacturing accounting. Review the units, period and assumptions before comparing scenarios. Displayed values are rounded, while the underlying calculation retains its available precision.

A worked example

$10,000 beginning inventory + $30,000 net purchases − $8,000 ending inventory gives $32,000 COGS and $18,000 gross profit on $50,000 revenue.

Reading your result

Use the main result together with its units and supporting figures. Display values are rounded; calculations keep their underlying precision. A change in inputs or assumptions can change the answer. Compare the step-by-step working with your intended use before relying on an estimate.

Frequently asked questions

What assumptions does this calculation use?

Use cost values, not retail selling prices, for inventory. Purchases should be net of relevant returns and include the acquisition costs appropriate to your records. The simplified reconciliation does not replace inventory valuation or manufacturing accounting.

Can I save or check a scenario?

The result includes the working and supporting values. Save and Restore keep inputs on this device; Copy, Download and Print export the result. Sharing a scenario explicitly includes the inputs in its link.

Sources & methodology

SEC: financial statements and ratios ↗

Formula review: October 24, 2026. Read our methodology.