> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# COGS Gross Rate: Cost of Goods as % of Gross Revenue

> Track COGS as a percentage of gross revenue. The inverse of gross margin—COGS Gross Rate + Gross Margin = 100%. Analyze product cost structure.

<Tip>
  Cost of goods sold as a percentage of gross revenue—the complement of gross margin rate.
</Tip>

## Formula

<Info>
  **COGS Gross Rate** = ( [**COGS**](/reference/metrics/orders/cogs/cogs) ÷ [**Gross Revenue**](/reference/metrics/orders/revenue/gross-revenue) ) × 100
</Info>

### Formula Components

| Metric                                                               | Definition                                    |
| -------------------------------------------------------------------- | --------------------------------------------- |
| [**COGS**](/reference/metrics/orders/cogs/cogs)                      | Total cost of products sold across all orders |
| [**Gross Revenue**](/reference/metrics/orders/revenue/gross-revenue) | Total revenue before discounts and refunds    |

| Metadata        |                                                                         |
| --------------- | ----------------------------------------------------------------------- |
| **Type**        | Percentage                                                              |
| **Data Source** | [Shopify](/sources/shopify), [Upstack Costs](/dashboard/settings/costs) |
| **Aggregation** | Ratio                                                                   |

***

## Example

Your store generated **\$185,000** in gross revenue with **\$68,450** in product costs this quarter:

| Metric              | Value     |
| ------------------- | --------- |
| Gross Revenue       | \$185,000 |
| COGS                | \$68,450  |
| **COGS Gross Rate** | **37.0%** |

This means 37% of your top-line revenue goes toward product costs, leaving 63% gross margin.

***

## How It Works

This metric divides total COGS by gross revenue, then multiplies by 100. COGS Gross Rate + Gross Margin Rate always equals 100%. A lower rate indicates higher product margins, while increases suggest rising supply costs or a shift toward lower-margin products.

***

## When to Use

| Scenario              | Action                                        |
| --------------------- | --------------------------------------------- |
| Quick margin check    | Subtract from 100% to find gross margin       |
| Supplier negotiations | Monitor impact of cost changes on margin      |
| Product mix analysis  | Track if sales shift toward higher-cost items |
| Period comparison     | Compare cost structure across months/quarters |

***

## Related Metrics

| Metric                                                                                                  | Relationship                    |
| ------------------------------------------------------------------------------------------------------- | ------------------------------- |
| [COGS](/reference/metrics/orders/cogs/cogs)                                                             | Dollar value used in numerator  |
| [Gross Revenue](/reference/metrics/orders/revenue/gross-revenue)                                        | Revenue baseline in denominator |
| [New Customer COGS Gross Rate](/reference/metrics/orders/cogs/new-customer-cogs-gross-rate)             | First-time buyer cost structure |
| [Returning Customer COGS Gross Rate](/reference/metrics/orders/cogs/returning-customer-cogs-gross-rate) | Repeat buyer cost structure     |
| [Gross Profit](/reference/metrics/orders/contribution-margin/gross-profit)                              | Revenue minus COGS              |

[See all COGS metrics →](/reference/metrics/orders/cogs)