Cost Per Unit Calculator
What each unit costs from fixed and variable costs, how it falls with volume, and the profit at a selling price.
Your costs
Filled in with example values. Replace them with your own.
Optional
Profit and margin per unit, and in total.
Currency symbol
Results update as you type.
Result
Cost per unit: $5.50 ($5,500.00 ÷ 1,000 units; fixed $2.00, variable $3.50)
Cost per unit
$5.50
- Fixed cost per unitFalls as you make more
- $2.00
- Variable cost per unit
- $3.50
- Total costsFixed + variable
- $5,500.00
What each unit costs
- Fixed share
- $2.00
- Variable cost
- $3.50
- Cost per unit
- $5.50
At other volumes
| Units | Fixed share | Cost per unit |
|---|---|---|
| 500 | $4.00 | $7.50 |
| 1,000 | $2.00 | $5.50 |
| 2,000 | $1.00 | $4.50 |
| 4,000 | $0.50 | $4.00 |
Assumes the same fixed costs and variable cost per unit at every volume.
How it’s calculated
Variable costs
$3.50 × 1,000 = $3,500.00
Total costs
$2,000.00 + $3,500.00 = $5,500.00
Cost per unit
$5,500.00 ÷ 1,000 = $5.50
How the cost per unit calculator works
Add up the fixed costs and the variable costs for a batch or period, then divide by the number of units made or bought. The result is split into the fixed share and the variable cost of each unit, so you can see which part drives it.
A table shows how the cost per unit changes at half, double and four times the volume, and an optional selling price adds the profit and margin per unit.
The formula
Total costs = Fixed costs + Variable costs
Cost per unit = Total costs ÷ Units
Fixed share = Fixed costs ÷ Units
Worked example
A batch of 1,000 units with 2,000 of fixed costs and materials of 3.50 a unit:
- Variable costs: 3.50 × 1,000 = 3,500
- Total costs: 2,000 + 3,500 = 5,500
- Cost per unit: 5,500 ÷ 1,000 = 5.50 (2.00 fixed share + 3.50 variable)
At 2,000 units the cost per unit falls to 4.50, and at 4,000 units to 4.00. Selling at 8.00 leaves 2.50 profit a unit, a 31.25% margin.
Assumptions and limitations
- The fixed costs and the variable cost per unit stay the same at every volume. In practice, bulk prices can lower the variable cost.
- Per-unit costs are shown exactly, up to four decimals, since they can be fractions of a cent.
- Taxes and costs you do not enter are not included.
Frequently asked questions
What is the difference between fixed and variable costs?
Fixed costs stay the same however many units you make in the period, such as rent, equipment or a setup fee. Variable costs grow with each unit, such as materials, packaging and shipping.
Why does the cost per unit fall when I make more?
The fixed costs are shared over more units, so each unit carries a smaller part of them. The variable cost per unit stays the same, so the cost per unit can never fall below it.
Can I use it for things measured by weight or volume?
Yes. Enter kilograms, litres or any other unit as the number of units; the result is then the cost per kilogram or litre. Decimals are allowed.
How do I compare prices of different pack sizes in a shop?
Leave the fixed costs empty, enter the pack price as the variable cost in total and the pack size as the units. The cost per unit is then the price per gram, item or millilitre.