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COGS Calculator

2025/26
Cost Inputs
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$
$
$

Freight, customs duties, packaging, etc.

$
$
Your Results
Gross Profit
COGS

Cost of Goods Sold

$105,000.00

Gross Profit

$95,000.00

Gross Margin

47.5%

Inv. Turnover

4.7x

COGS Calculation
Opening Inventory$25,000.00
+ Purchases$80,000.00
+ Direct Labour$15,000.00
+ Other Direct Costs$5,000.00
= Goods Available for Sale$125,000.00
- Closing Inventory-$20,000.00
= Cost of Goods Sold$105,000.00
Profitability
Revenue$200,000.00
COGS-$105,000.00
Gross Profit$95,000.00
Gross Margin47.5%
COGS-to-Revenue Ratio52.5%
Inventory Turnover4.7x
Days in Inventory78 days
More Information
Understanding Cost of Goods Sold

Key COGS concepts for Singapore businesses

What is COGS?

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of goods sold by a business. The formula is: Opening Inventory + Purchases + Direct Costs - Closing Inventory = COGS. For Singapore businesses, COGS is deductible from revenue to determine gross profit for tax purposes.

What to include in COGS

COGS includes: raw materials and components, direct labour costs (factory/production workers), freight and shipping for inventory, customs duties on imported goods, packaging materials, and factory overheads directly tied to production. It excludes: marketing, administrative salaries, office rent, and selling expenses.

Inventory valuation methods

Singapore follows the Singapore Financial Reporting Standards (SFRS), which allow FIFO (First-In, First-Out) and weighted average cost methods. LIFO is not permitted under SFRS. The method chosen affects COGS and consequently your taxable profit. Consistency in inventory valuation is required by IRAS.

Note: COGS figures directly impact your corporate tax liability. Ensure your inventory records comply with IRAS requirements. For businesses with complex inventory, consult a qualified 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