Know the real product cost
Bring supplier price, freight, duties, materials, packaging and other direct costs into one number you can actually use.
Free business template
Product Costing &
COGS Template
A product is not profitable just because you sold it for more than you bought it for.
Supplier price is only the beginning. Freight, duties, raw materials, packaging, direct labour and other product costs can quietly eat through the margin you thought you had. Use this free template to calculate what each product really costs, track Cost of Goods Sold, value the stock you still hold and see what your products are actually leaving behind.
Free to use. No sign up required.
Calculate COGS properly
Separate the cost of inventory actually sold from the value of stock still sitting inside the business.
See gross profit underneath sales
Stop judging products by revenue alone. See what remains after the direct cost of the products sold is removed.
Know what your stock is worth
Turn units on a shelf into an inventory value so you can see how much business cash is still tied up in stock.
Make better buying decisions
Compare product margin and stock value before you buy more of what may not be earning its place.
Template features
If the cost is wrong, the margin is wrong too.
Product and SKU list
Keep every product you cost and track in one organised product list.
Full product cost build-up
Go beyond supplier price by adding the direct costs required to prepare each product for sale.
Purchases and production batches
Record stock coming in and keep the cost attached to each purchase or production batch visible.
Sales and units sold
Record what actually sold so inventory cost can be matched to the products that left the business.
Cost of Goods Sold
See the product cost that moved out of inventory and into COGS instead of treating every purchase as an immediate expense.
Closing inventory value
See the cost value still tied up in unsold products at the end of the period.
Gross profit and margin
Compare revenue against COGS to see what each product is actually leaving behind.
Example entries to get started
See how product costs, sales and inventory movements fit together before adding your own numbers.
Get started
Use it where you already work.
Google SheetsUse it online
Open the Product Costing & COGS Template in Google Sheets, update costs and sales as they change, and keep the latest version available across your devices.
The live Google Sheets link will appear here after delivery is approved.Microsoft ExcelDownload the spreadsheet
Download the template to Excel, work offline and keep your product costing records inside your existing business files.
The Excel file will appear here after the download-delivery approach is approved.Step by step
Turn product costs into numbers you can actually make decisions from.
Add your products
Start with the products or SKUs you want to track. Prioritise the items that generate the most sales or tie up the most money in inventory.
| SKU | Product | Price |
|---|---|---|
| CUP-01 | Rose Cup | 2,400 |
Build the real cost
Add the direct costs required to acquire, manufacture or prepare each product for sale. Do not stop at the supplier invoice if the business paid more to get the item ready.
| Buy | Freight | Total |
|---|---|---|
| 900 | 220 | 1,120 |
Record stock and sales
Add inventory as it comes into the business, then record what actually sells. That separation keeps unsold inventory from being confused with COGS.
| Received | Sold | Left |
|---|---|---|
| 100 | 42 | 58 |
Review what is profitable
Compare revenue, COGS, gross profit and closing inventory. Look for products that generate sales but leave too little margin or tie up too much cash.
| Measure | Amount | Status |
|---|---|---|
| Revenue | 100,800 | Review |
| COGS | 47,040 | Tracked |
| Gross Profit | 53,760 | Healthy |
Useful for
Built for businesses where stock has to earn its place.
Retail businesses
Understand what the products on your shelves really cost and whether the margin justifies carrying them.
Online and social sellers
Know whether products creating orders on WhatsApp, Instagram, TikTok or your website are also creating enough gross profit.
Importers and resellers
Bring freight, duties and other landed costs into the number instead of treating supplier price as the whole cost.
Handmade and manufacturing businesses
Build product cost from raw materials, direct labour, packaging and other production costs at unit or batch level.
FAQ
Frequently asked questions.
Is this Product Costing & COGS Template free?
Yes. The template is free to use. You can use the Google Sheets version online or download the Microsoft Excel version when those delivery links are available.
What is a Product Costing & COGS Template?
It is a spreadsheet that helps you build the direct cost of your products, track inventory coming in and going out, calculate the cost attached to products sold, value stock still on hand and work out gross profit.
What does COGS mean?
COGS means Cost of Goods Sold. It is the direct cost of the products your business actually sold during a period. Stock that is purchased but unsold normally remains in inventory rather than immediately becoming COGS.
What is the basic COGS formula?
A common formula is Beginning Inventory + Purchases − Ending Inventory = Cost of Goods Sold. SKU- or batch-level tracking can calculate COGS more precisely by matching inventory cost layers to units sold.
Is buying inventory the same as recording COGS?
No. Buying inventory brings stock into the business. COGS is recognised as that stock is sold. Treating the entire purchase as COGS immediately can distort both profit and inventory value.
What costs should I include in product cost?
Include costs directly required to acquire, manufacture or prepare the product for sale, such as purchase price, raw materials, freight, import duties, packaging and direct production labour.
Should advertising and general business expenses be included in COGS?
General advertising, office rent, administrative salaries, software and other wider operating expenses normally sit outside COGS so gross margin continues to show what the products themselves leave behind.
Can I use this template for imported or handmade products?
Yes. Add directly attributable landed costs for imported products. For handmade or manufactured products, build the cost using raw materials, direct labour, packaging and other directly attributable production costs.
Why does accurate product costing matter?
The wrong cost creates the wrong margin, and the wrong margin can create the wrong price, discount, reorder and product decision. You cannot manage margin from a cost number you guessed.