Business

Cost Per Unit Calculator

Fixed plus variable cost per item.

Enter your values

Results update instantly as you type — no submit needed.

Results
Cost per unit
$10.50
Fixed cost share
$4.00
Total production cost
$31,500.00
Profit per unit
$9.49
Gross margin
47.47%

Quick answer

Cost per unit is total fixed costs divided by volume plus the variable cost of each unit.

Cost/unit = (Fixed ÷ Units) + Variable

How to use the Cost Per Unit Calculator

  1. 1Enter total fixed costs for the period.
  2. 2Enter the variable cost of one unit.
  3. 3Enter how many units you produce.

Frequently asked questions

Why does cost per unit fall with volume?

Fixed costs spread over more units — that is economy of scale.

Should I include labour?

Yes: direct labour is variable, salaried supervision is fixed.