Skip to content
Calculation Machine

Cost Per Unit Calculator

Fixed plus variable cost per item.

Reviewed by James Whitfield · How we check our maths

Your values

ⓘ Live results

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.

The formula

Cost/unit = (Fixed ÷ Units) + Variable

Worked example

Worked example

Using the values the calculator loads with.

Inputs

  • Total fixed costs12000 $
  • Variable cost per unit6.5 $
  • Units produced3000
  • Selling price19.99 $

Result

  • Cost per unit$10.50
  • Fixed cost share$4.00
  • Total production cost$31,500.00
  • Profit per unit$9.49
  • Gross margin47.47%

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.

About this calculator