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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