Total sales revenue for the period (VAT-exclusive if VAT-registered).
Cost of Goods Sold
€55,000.00
Gross Profit
€65,000.00
Gross Profit Margin
54.2%
Everything you need to know about COGS for your Irish business
What is cost of goods sold?
Cost of Goods Sold (COGS) represents the direct costs of producing or purchasing the goods that a business sells during a specific period. It includes materials, direct labour, and other direct costs. COGS is a key metric reported on your profit and loss account filed with Revenue.
How is COGS calculated?
The basic formula is: Beginning Inventory + Purchases - Ending Inventory = COGS. This method tracks inventory flow to determine how much stock was consumed during the period. In Ireland, businesses must maintain accurate records for Revenue and Companies Registration Office (CRO) filings.
Why is gross profit margin important?
Gross profit margin shows what percentage of revenue remains after covering direct costs. A healthy margin ensures you can cover operating expenses, VAT obligations at 23%, Corporation Tax at 12.5%, and generate net profit. Tracking this over time helps identify pricing or cost issues early.
Note: This calculator uses the periodic inventory method. Ensure your figures are VAT-exclusive if you are VAT-registered. For complex inventory accounting, consult a qualified chartered accountant.
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Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms