COGS Calculator
Cost of goods sold (COGS) is the direct cost of the inventory you sold during a period. Add beginning inventory to purchases, then subtract ending inventory. It feeds gross margin, inventory turnover and your income statement. Enter your beginning, purchases and ending values to get COGS instantly.
COGS feeds gross margin, inventory turnover and your income statement.
The formula
Worked example
Starting the quarter with $45,000 of inventory, buying $120,000 more and ending with $35,000 on hand: COGS = 45,000 + 120,000 − 35,000 = $130,000. That's the cost of everything you actually sold during the quarter.
Stop calculating by hand
Logistified computes this across your whole Shopify catalog automatically — from live sales data — and turns it into reorder alerts and purchase orders.
Frequently asked
What is cost of goods sold (COGS)?
COGS is the direct cost of the inventory you actually sold during a period. You compute it as beginning inventory plus purchases minus ending inventory. It excludes overhead like marketing and admin, and it flows straight into gross profit on your income statement.
What's included in purchases?
Purchases cover the cost of inventory acquired during the period, plus directly attributable inbound costs like freight-in and import duties. For manufacturers, it's the cost of raw materials and direct production inputs added to stock during the period.
How do I find beginning and ending inventory?
Beginning inventory is the value of stock on hand at the start of the period — it equals the prior period's ending inventory. Ending inventory is the value of stock left at the close of the period, ideally confirmed by a physical or perpetual count, valued at cost.