Understanding your expenses is the first step to building a profitable business. The variable cost to produce the goods you sell is called Cost of Goods Sold or COGS.

COGS is the direct expenditure required to produce the goods or services you sell to customers. It includes labour and materials but excludes indirect costs like sales and marketing.

Understanding your COGS will help you to:
+ identify opportunities to reduce direct costs associated with your products;
+ improve the margin you make on your products; and
+ improve your business' profitability.

LegalVision has created this free COGS Calculator to help you determine the COGS for a product, or series of products, that you sell.

You can then use this information to calculate your Gross Margin.Read What is Cost of Goods Sold and How Does it Affect My Gross Margin? in conjunction with downloading LegalVision’s free COGS Calculator.

If you need legal assistance with your new business, LegalVision’s experienced startup lawyers can assist. Just call 1300 544 755.


About LegalVision

LegalVision is a market disruptor in the commercial legal services industry. Our innovative business model and custom-built technology assist our lawyers to provide a faster, better quality and more cost-effective client experience. LegalVision is a leader in delivering legal services in Australia and has assisted more than 150,000 businesses.

The firm was awarded NewLaw Firm of the Year at the Australian Law Awards and named fastest growing law firm in the Asia-Pacific by the Financial Times.

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