Cost of Goods Sold (COGS) Calculator
Calculate your business's COGS and analyze gross profit with step-by-step calculations
Enter Inventory Details
Results
Understanding COGS
Key Components
Essential elements in COGS calculation:
Basic Elements:
- Beginning Inventory:
Value of inventory at the start of the period
- Purchases:
Cost of goods acquired during the period
- Ending Inventory:
Value of remaining inventory at period end
Business Insights
Understanding COGS metrics:
Key Metrics:
- Gross Profit:
Revenue minus COGS, shows basic profitability
- Profit Margin:
Gross profit as a percentage of revenue
- Inventory Management:
Tracking inventory levels and turnover
Business Planning Guide
Inventory Management
Key Steps:
- • Track inventory levels
- • Monitor purchase costs
- • Optimize stock levels
- • Analyze turnover rates
- • Implement controls
Profitability Analysis
Essential Tasks:
- • Calculate margins
- • Review pricing strategy
- • Analyze costs
- • Monitor trends
- • Set profit targets
Cost Control
Action Items:
- • Negotiate prices
- • Reduce waste
- • Improve efficiency
- • Manage suppliers
- • Track expenses