Profitability guide
How to use the average fixed cost calculator
Worked example
Average fixed cost: calculation example
$24,000 of fixed costs divided by 1,200 units gives $20 per unit. At 1,600 units, the same fixed cost base would be $15 per unit.
At the same fixed-cost total, cost per unit falls as volume rises. A new shift, location, or other capacity change may raise fixed costs.
Common question
Understand the result
Is average fixed cost the full cost per unit?
No. It excludes variable costs. Pricing and break-even analysis also need the selling price and variable cost per unit.