Cost of Goods Sold Calculator
This cost of goods sold calculator works out COGS as beginning inventory plus purchases minus ending inventory. With 12,000, 38,000 and 9,500 that is 40,500, which on 150,000 of sales is 27% and a gross profit of 109,500. The second mode finds a selling price from the cost of one portion.
Example: What do you want to calculate: COGS from inventory and purchases · Beginning inventory 12,000 · Purchases in the period 38,000 · Ending inventory 9,500 · Net sales (optional) 150,000 → Result: Cost of goods sold: 40,500.00. Source: Wikipedia – Cost of goods sold: beginning inventory + purchases − ending inventory. Updated: .
How it is calculated
How to calculate cost of goods sold
Cost of goods sold (COGS) is the value of the goods used or sold in a period: beginning inventory + purchases − ending inventory. With 12,000 of beginning inventory, 38,000 of purchases and 9,500 of ending inventory that is 40,500. Purchases count net of discounts.
Key figures with sales
- COGS percentage = COGS ÷ net sales × 100. On 150,000 of sales that is 27%.
- Gross profit = net sales − COGS, here 109,500 or 73% of sales.
- Markup = gross profit ÷ COGS, here 270%. The cost multiplier sales ÷ COGS is 3.70.
Selling price from a target percentage
The other way round, you set the wanted percentage: net price = cost ÷ percentage × 100. If a portion costs 3.20 and the target is 30%, the net price is 10.67, or 12.69 with 19% tax. In restaurants, food cost percentages between 25 and 35% are often quoted, depending on the concept.
Limits
The calculator applies the simple inventory formula. Waste, labour, energy, rent and other costs are not part of COGS, and percentages are rules of thumb, not requirements. For tax accounting, follow your accountant’s rules.
Frequently asked questions
How do you calculate cost of goods sold?
Beginning inventory plus purchases minus ending inventory. 12,000 + 38,000 − 9,500 is 40,500.
What should food cost be in a restaurant?
Often 25 to 35% of net sales is quoted. It depends on the concept, the price level and waste, and is not a fixed measure.
How do I work out a selling price from COGS?
Divide the cost by the wanted percentage and multiply by 100 to get the net price. Then add sales tax.
What is the difference between COGS and gross profit?
COGS is the value of the goods sold. Gross profit is what remains of net sales after subtracting COGS.
Is COGS calculated with or without tax?
Without. Purchases and sales are taken net, because sales tax is a pass-through item.
Sources and legal basis
As of: · Editorial policy
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