Cost Per Unit Calculator
Calculate the total cost per unit produced or sold by combining fixed and variable costs across your production volume.
Your results
Calculation breakdown
- Total cost
- Fixed costs + (Variable cost per unit × Units)
- Cost per unit
- Total cost ÷ Units
Worked example
A small manufacturer with $20,000 fixed costs, $15 variable cost per unit and 5,000 units produced has a cost per unit of $19.
Assumptions
- Fixed costs should relate to the same period as units produced.
- Increasing production volume lowers the fixed cost share per unit, not the variable cost.
- Use ex-GST costs for a like-for-like comparison with pricing.
How this calculator works
This calculator divides your total fixed and variable costs across the number of units produced to show the average cost per unit. Use it to check pricing covers your true production cost.
Frequently asked questions
What is included in fixed costs?
Costs that stay the same regardless of output, such as rent, insurance and salaried wages, over the period you're costing.
Why does unit cost fall as volume rises?
Fixed costs are spread across more units, so the fixed cost portion per unit decreases even though variable cost per unit stays constant.
How do I use this for pricing?
Add your desired margin on top of the cost per unit shown here to set a minimum viable selling price.
Results are estimates only and are not financial, tax, legal or credit advice.