What this tool is for
COGS Calculator is built for business planning inside business calculators when you need to estimates cost of goods sold from inventory movement. It focuses on cogs instead of making you adapt a broad calculator to a narrow task.
When to use it
Use it when beginning inventory, purchases, and ending inventory are already known and you want a fast estimate before comparing options, checking a worksheet, or copying the result into another workflow.
Inputs
- Beginning inventory is one of the direct inputs used to calculate cogs. Use $ for this field.
- Purchases is one of the direct inputs used to calculate cogs. Use $ for this field.
- Ending inventory is one of the direct inputs used to calculate cogs. Use $ for this field.
Formula
COGS = beginning inventory + purchases - ending inventory
Example
$5,000 + $2,000 - $3,500 gives $3,500 COGS.
What the result means
The result labeled "COGS" is the direct output of COGS = beginning inventory + purchases - ending inventory. In the worked example, $5,000 + $2,000 - $3,500 gives $3,500 COGS.
Before you rely on the result
Treat the output as a planning estimate. Taxes, refunds, fees, contracts, accounting policy, and local rules can change the real business result.