Cost of Goods Sold (COGS)
Cost of Goods Sold is the total direct cost of producing or purchasing the products a business sells during a specific period. It includes raw materials, manufacturing labor, and any other costs directly tied to production. COGS is subtracted from revenue to calculate gross profit and is a fundamental component of every profitability metric.
COGS Calculator
Inputs
Results
Cost of Goods Sold
$85,000.00
beginning_inventory+purchases−ending_inventoryHow to Calculate Cost of Goods Sold (COGS)
Why Cost of Goods Sold (COGS) Matters
Understanding your COGS at a granular level is essential for pricing products correctly and maintaining healthy margins. If COGS rises faster than revenue, your business is becoming less efficient even as sales grow. Tracking COGS per product helps identify which items in your catalog are genuinely profitable and which are dragging down your margins.
Industry Benchmarks
What is a good COGS? Based on industry benchmarks, a COGS considered low is under 40% of revenue, average is 40% - 60% of revenue, and high is over 60% of revenue. These figures vary by industry, product category, and business model, so use them as directional guidance rather than hard targets.
Connect your entire ecommerce stack
Fullcart integrates with the platforms you already use—Shopify, Meta Ads, Amazon, and more—so you can manage everything from one place.
Connect your storeRelated Resources
Average Order Value (AOV)
Average Order Value is the mean dollar amount spent each time a customer places an order on your store. It is calculated by dividing total revenue by the number of orders over a given period. AOV is one of the simplest yet most impactful levers for growing revenue without acquiring new customers.
Ecommerce Conversion Rate
Ecommerce Conversion Rate is the percentage of website visitors who complete a purchase. It is calculated by dividing the number of sessions that result in an order by the total number of sessions. Conversion rate is a core indicator of how well your store turns traffic into paying customers.
Ecommerce Profit Margin
Ecommerce Profit Margin is the percentage of revenue that remains as profit after subtracting all costs including cost of goods sold, shipping, platform fees, advertising, and operating expenses. It tells you how much of every dollar in sales your business actually keeps. Profit margin is the ultimate measure of business efficiency.
Revenue Per Session
Revenue Per Session is the average amount of revenue generated by each visitor session on your store. It is calculated by dividing total revenue by total sessions. Unlike conversion rate, this metric accounts for both the likelihood of a purchase and the value of that purchase.
Refund Rate
Refund Rate is the percentage of orders that result in a full or partial refund. It is calculated by dividing the number of refunded orders by the total number of orders. A high refund rate can indicate product quality issues, misleading product descriptions, or fulfillment problems.
Cart Abandonment Rate
Cart Abandonment Rate is the percentage of shoppers who add items to their cart but leave without completing the purchase. It is calculated by dividing the difference between carts created and carts completed by the total carts created. This metric reveals how much potential revenue is slipping through the cracks at checkout.
Track your COGS automatically
Stop calculating Cost of Goods Sold (COGS) by hand. Fullcart pulls your store data and tracks it in real time so you can focus on improving it.
*Always free, no card required