What is COGS (Cost of Goods Sold)?

COGS (Cost of Goods Sold) refers to the direct costs involved in producing or purchasing the goods that a business sells. Learn more: - [Investopedia – Cost of Goods Sold (COGS)](https://www.investopedia.com/terms/c/cogs.asp) - [Wikipedia – Cost of goods sold](https://en.wikipedia.org/wiki/Cost_of_goods_sold)

What costs are included in COGS for retail businesses?

For retail businesses, COGS usually includes the purchase cost of products, import or supplier fees, and other direct costs required to acquire goods for resale. This tool focuses on retail-based COGS and does not include manufacturing or production-related costs.

What is gross profit margin?

Gross profit margin measures how much profit a business makes after deducting COGS from revenue. Formula: `(Revenue − COGS) / Revenue × 100` Reference: - [Investopedia – Gross Margin](https://www.investopedia.com/terms/g/grossmargin.asp)

What is markup and how is it different from margin?

Markup is the percentage added to COGS to determine the selling price, while margin measures profit as a percentage of revenue. Further reading: - [Investopedia – Markup](https://www.investopedia.com/terms/m/markup.asp)

Who should use a COGS and margin calculator?

This tool is ideal for business owners, retailers, online sellers, and anyone who needs to set prices or analyze profitability.

Can this tool help with pricing strategy?

Yes. By understanding COGS, margin, and markup, you can set prices that cover costs and achieve your desired profit level.

Is my data stored or sent to a server?

No. All calculations are performed locally in your browser. No data is uploaded or stored.

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COGS & Profit Margin Calculator

Calculate Cost of Goods Sold (COGS), Gross Profit Margin, and Markup percentage to optimize your pricing strategy and business profitability.

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COGS & Profit Margin Calculator