INVENTORY / FREE OPERATOR TOOLS
Cost of Goods Sold Calculator
Calculate goods used for food, beverage or retail using consistent cost valuations.
Default numbers are an example, not industry data.
Formula
COGS = beginning inventory + purchases − ending inventory.
How it works
COGS measures the cost of goods used during a period rather than cash paid to suppliers. Enter beginning stock, purchases received and ending stock at consistent cost valuations. Use the same category and date boundaries for all three inputs.
Account for purchase credits and inventory transfers consistently before entering totals. Do not value ending stock at menu prices or substitute sales revenue for purchases. For comparisons with sales, use net sales excluding VAT or sales tax; apply a consistent treatment of recoverable purchase tax. Investigate unexpected changes through stock counts, waste and purchasing records.
Worked example
5,000 beginning inventory + 12,000 purchases − 4,000 ending inventory = 13,000.00 COGS.
Frequently asked questions
Why are purchases different from COGS?
Some purchases remain in stock, while some goods used came from beginning stock. Inventory adjustments connect purchases to goods used.
Can I use this for beverage inventory?
Yes. Use beginning inventory, purchases and ending inventory for the same beverage category and period, all valued at cost.
What does negative COGS indicate?
Ending inventory exceeds beginning inventory plus purchases. Review counts, valuations, transfers and missing receipts; this calculator leaves that inconsistent result blank.
Are my inputs saved or uploaded?
Calculations run in your browser. Inputs are not uploaded by the calculator. Sharing puts the inputs in a readable URL; anyone with that link can see them.