Cannabis COGS Calculator

Calculate your cost of goods sold by business type. Understand which costs qualify as COGS under IRC 280E and maximize your allowable deductions.

Business Type

Revenue & Volume

$

Cultivator / Grower Costs

Enter annual cost amounts. Each item is tagged by its 280E COGS eligibility.

COGSSeeds / Clones Cost

Purchase cost of seeds, clones, and starter plants

$
COGSDirect Labor Hours (Annual)

Total hours for growers, trimmers, cultivation staff

COGSDirect Labor Rate ($/hr)

Average hourly rate for production labor

$
COGSGrow Facility Rent (Production %)

Monthly rent x 12, multiplied by % used for production

$
COGSUtilities (Production %)

Power, water, HVAC allocated to grow operations

$
COGSNutrients / Soil / Supplies

Growing media, fertilizers, pest management supplies

$
BorderlineTesting Costs

Lab testing for potency, contaminants, compliance

$
BorderlinePackaging

Bags, containers, labels for finished product

$
COGSTrim Labor

Contract or seasonal trimming labor

$
COGSClearly includableBorderlineMay require documentation

COGS Summary

Clearly Includable$0
Borderline Items$0

Total COGS$0

This calculator provides estimates for educational purposes only. COGS categorization depends on your specific business operations and may be subject to IRS interpretation. Consult a qualified CPA for personalized advice.

Need expert help with this?

Properly allocating costs to COGS is one of the most impactful strategies for cannabis businesses under 280E. Let our team review your numbers.

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