COGS as a percentage of revenue is the share of each rupee of sales that goes to the cost of the goods sold. It is 100 minus the gross margin percentage.
COGS % = Cost of goods sold ÷ Revenue × 100
On the sample data below, six months come to 54.44%.
Why it matters
Expressing cost as a share of revenue makes it comparable across months of different size, and it is the number suppliers and investors usually ask about.
Worked example
The table shows the columns this metric needs from six months of a made-up subscription brand. Add each column up over the six months, then put the totals into the formula:
| Month | Revenue (net of discounts) | Cost of goods sold |
|---|---|---|
| 2026-01 | ₹4,12,000 | ₹2,26,600 |
| 2026-02 | ₹4,38,500 | ₹2,36,800 |
| 2026-03 | ₹4,71,200 | ₹2,59,200 |
| 2026-04 | ₹4,55,800 | ₹2,55,200 |
| 2026-05 | ₹5,02,300 | ₹2,71,200 |
| 2026-06 | ₹5,48,900 | ₹2,90,900 |
| Total | ₹28,28,700 | ₹15,39,900 |
₹15,39,900 ÷ ₹28,28,700 × 100 = 54.44%
Add up first, then divide. Averaging the six monthly figures gives a slightly different answer, because it counts a small month the same as a large one.
Month by month
| Month | COGS as a percentage of revenue |
|---|---|
| 2026-01 | 55.00% |
| 2026-02 | 54.00% |
| 2026-03 | 55.01% |
| 2026-04 | 55.99% |
| 2026-05 | 53.99% |
| 2026-06 | 53.00% |
COGS as a percentage of revenue calculator
How to read it
If it rises while supplier prices are flat, look at discounts and product mix before blaming costs.
Common mistakes
- It is the mirror of gross margin, so do not report both as separate findings.
- Inventory write-offs land in COGS in some accounting setups and in operating costs in others; know which yours uses before comparing periods.
- Use revenue after discounts, or the percentage looks better than it is.
Calculate COGS as a percentage of revenue in Excel, SQL or Python
The quickest version, for the sample sheet laid out as in the CSV (headers in row 1, months in rows 2 to 7):
=SUM(C2:C7) / SUM(B2:B7)- COGS as a percentage of revenue in Excel and Google Sheets — per-month formula and zero-safe version
- COGS as a percentage of revenue in SQL — query by month and for the period
- COGS as a percentage of revenue in Python (pandas) — pandas script with expected output
Related metrics
See all business metrics, or the statistics methods that sit behind them.
Questions people ask
- What is COGS as a percentage of revenue?
- COGS as a percentage of revenue is the share of each rupee of sales that goes to the cost of the goods sold. It is 100 minus the gross margin percentage.
- How do you calculate COGS as a percentage of revenue?
- COGS % = Cost of goods sold ÷ Revenue × 100. For example, with six months of sample data: ₹15,39,900 ÷ ₹28,28,700 × 100 = 54.44%.
- What is the COGS as a percentage of revenue formula in Excel?
- With the sample data laid out as in the downloadable CSV, =SUM(C2:C7) / SUM(B2:B7) gives the figure for the whole period (format the cell as a percentage). For one month, use =C2 / B2 and fill it down.
- What is a good COGS as a percentage of revenue?
- There is no figure that is right for every business: it depends on your products, prices and channels. If it rises while supplier prices are flat, look at discounts and product mix before blaming costs.
Check how stable it is
A metric moves for ordinary reasons as well as real ones. These methods separate the two: the spread shows what a normal month looks like, the moving average smooths it, the z-score flags a month that is out of line and the trend line shows the direction.
Guides
About the data on this page
The figures come from a small made-up dataset, printed above in full so you can check every number by hand. Download it as monthly.csv. The results are computed from those rows when the page is built, and the Excel formulas, SQL and Python on these pages are run against the same rows before publishing, so the code and the answers agree.
To get these numbers from your own data without writing formulas, try AnalyzeIt: ask in plain words and it shows the working behind every figure.
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