How to use Cost of Goods Sold Calculator
- Enter opening inventory at cost.
- Enter net purchases for the same period.
- Enter closing inventory and review the calculated cost of goods sold.
Example: Cost of Goods Sold Calculator
Cost of Goods Sold Calculator: Cost of goods sold is 55000.00, after subtracting closing inventory of 15000.00 from goods available for sale of 70000.00.
Options
- Inventory at cost
- Use opening and closing inventory values measured on the same cost basis. Retail selling prices belong to a different calculation.
- Net purchases
- Enter the purchase total after the adjustments you intend to include. This page does not decide which shipping, return or discount entries belong in that figure.
Supported inputs and limits
Where your input is processed
This tool processes your input in this browser. Your text and files are not uploaded to UseFreeTools. Check this tool's limits for anything it may save on your device.
Reconcile the period before using the total
Goods available at cost equal opening inventory plus net purchases. The closing balance is then subtracted. A count or valuation error in closing inventory changes the result directly, so keep the calculation with the records supporting all three amounts. It supplies arithmetic for a periodic inventory model, not accounting entries.
Questions about Cost of Goods Sold Calculator
Should I enter sales revenue?
No. These fields use inventory and purchase costs. Revenue belongs in a separate profit calculation.
Where do purchase returns go?
Include their effect in the net purchases figure before entering it. The tool has no separate returns or freight ledger.
Why is a negative result refused?
It means closing inventory exceeds the available cost under this simplified identity. Recheck the figures and any missing adjustments.