Learn how to calculate your COGS using our free-to-download cost of goods sold calculator! You can follow right along with the same template used in this video! Our excel COGS template will automatically calculate your COGS using our COGS formula.
Our template takes the cost of goods sold equation and automatically calculates your COGS for you
Our easy-to-use COGS calculator will have your monthly AND annual COGS tallied up in just minutes and ready to be plugged into your accounting.
The calculation for cost of goods sold is starting inventory + purchases − ending inventory = cost of goods sold. For example, at the beginning of each month you should calculate your starting inventory amount and at the end of the month calculate your ending inventory amount. Add your inventory purchases for the month to your starting inventory and subtract your ending inventory amount to determine your cost of goods sold (COGS).
COGS stands for Cost of Goods Sold.
COGS should include the direct material expenses and direct labor expenses to produce your product or service.
An example of cost of goods sold would be the cost of food and ingredients at a restaurant as well as the labor cost for the cooks preparing the food.
All direct materials and direct labor costs involved in producing your product or service should be included in your cost of goods sold.