Gombo Tools

Inventory calculator

COGS Calculator

Use this free COGS calculator to estimate the cost of goods sold for a period. Enter your beginning inventory, purchases, direct expenses, and ending inventory to understand the inventory cost linked to goods sold. It is useful for retail, wholesale, production, inventory tracking, and profitability analysis.

Result overview

Beginning inventory

15,000

+

Purchases

8,000

+

Direct expenses

1,000

−

Ending inventory

6,000

=

COGS

18,000

Goods available for sale

24,000

How to calculate COGS

Cost of Goods Sold, or COGS, estimates the direct cost of the goods you sold during a period. It starts with the inventory you had at the beginning, adds purchases and direct expenses, then subtracts the inventory left at the end.

Calculate goods available for sale

Beginning inventory
Purchases
Direct expenses
Goods available for sale

Goods available for sale = Beginning inventory + Purchases + Direct expenses

Goods available for sale represents the total inventory cost available during the period before subtracting what remains unsold.

Calculate cost of goods sold

Goods available for sale
Ending inventory
COGS

COGS = Beginning inventory + Purchases + Direct expenses − Ending inventory

COGS represents the direct cost linked to the goods sold during the period.

How to use this calculator

  • Enter the value of inventory at the beginning of the period.
  • Enter purchases made during the period.
  • Enter direct expenses linked to acquiring or producing goods.
  • Enter the value of inventory remaining at the end of the period.
  • Review goods available for sale and total COGS.

Examples

Example 1 – Boutique store

Beginning inventory
15,000
Purchases
8,000
Direct expenses
1,000
Ending inventory
6,000
Goods available for sale
24,000
COGS
18,000
Explanation
The boutique spent 18,000 on goods actually sold during the period.

Example 2 – Coffee roaster

Beginning inventory
12,000
Purchases
7,000
Direct expenses
1,200
Ending inventory
5,000
Goods available for sale
20,200
COGS
15,200
Explanation
The roaster’s COGS is 15,200 for the period after subtracting remaining inventory.

Tips

Include only costs directly tied to goods sold, not general administrative expenses.
Keep inventory records updated to avoid inaccurate COGS.
Use a consistent inventory valuation method.
Compare COGS with revenue to understand gross profit.
Review COGS when supplier prices, freight, packaging, or production costs change.

Want to manage inventory and profitability more clearly?

Gombo helps you manage invoices, stock, reporting, and business operations from one connected platform.

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