COGS Calculator
Calculate cost of goods sold from opening inventory, purchases and closing inventory.
Cost of goods sold
What it measures
COGS is opening inventory plus purchases minus closing inventory: the direct cost of what you actually sold in the period, not what you bought.
Why it matters
COGS sets gross margin, and gross margin sets everything downstream. Getting it wrong misprices the whole business.
A worked example
Opening at 20,000, buying 45,000 and closing at 18,000 means 47,000 of goods were sold at cost.
How to read and improve it
For SaaS, translate the idea: hosting, support and delivery services are your inventory equivalent.
Frequently asked questions
What belongs in COGS?
Costs that scale directly with units sold or customers served. Rent and marketing do not.
Why does inventory appear twice?
Because purchases include goods still on the shelf. The closing adjustment removes what was not sold.
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