Enter the total cost and total number of units sold into the calculator below. The calculator will evaluate and display the average cost per unit sold.

## Average Cost Formula

The following equation can be used to calculate the average cost of a good.

AC = TC / TU

- Where AC is the average cost
- TC is the total cost
- TU is the total units sold

## What is an average cost?

An average cost is exactly as it sounds. It’s the average cost to produce 1 unit of goods given the total cost and total units produced. Since costs can vary between unit to unit, taking the average cost can be helpful in financial situations.

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