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Inventory & Cost of Goods Sold Calculator

Calculate cost of goods sold from beginning inventory, purchases and ending inventory.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Add beginning inventory and purchases, then subtract ending inventory. Use inventory costs rather than selling prices, and keep all three figures within the same accounting period.

COGS = beginning inventory + purchases − ending inventory

Worked example

Enter these known values and leave the other values blank.

Beginning inventory
10000 USD
Purchases
20000 USD
Ending inventory
8000 USD
Cost of goods sold (COGS)
22000 USD

Assumptions and limitations

  • Inputs describe one consistent reporting period. Review the formula and counting conventions before comparing results.

Common questions

Should inventory use its retail price?

No. This calculation uses inventory cost. Your accounting policy determines which acquisition and production costs belong in those figures.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

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