Calculate your exact Cost of Goods Sold for accurate profit and tax reporting.
Enter your inventory and purchase figures
Cost of Goods Sold (COGS) represents the direct cost of producing or acquiring the products a business actually sold during a given period. It's a critical figure for calculating gross profit and is required on tax filings for any business that sells physical goods.
COGS = Beginning Inventory + Purchases − Ending Inventory. In plain terms: everything you had, plus everything you bought, minus what's left unsold, equals what you actually spent on goods you sold.
Understating COGS inflates your apparent profit and can lead to overpaying taxes or misjudging your true margins. Overstating it does the opposite. Accurate inventory tracking throughout the period is essential for this number to be reliable.