How do I calculate COGS in Excel?

Cost Of Goods Sold = Beginning Inventory + Purchases During The Year - Ending Inventory. It is more complex than this in practice of course, this however, is the basic formula for calculations.

To better understand the COGS formula in excel, we need to observe the below mathematical formula:

Cost Of Goods Sold (COGS) = Beginning Inventory + Purchases during the year - Ending Inventory

If you can have the values of the above three variables, you can easily compute this formula in excel.

Use the sum and minus function to obtain the result of the above three variables to find the COGS. If you don't want to get into the hassle of making your formula from scratch, you can download free COGS templates from the internet.