Enter the variable cost and total output/quantity into this average variable cost calculator to evaluate the ratio of cost to output.

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## Average Variable Cost Formula

The formula for calculating the average variable cost of an item or business is as follows:

AVC = VC / Q

- Where AVC is the average variable cost
- VC is the variable cost
- Q is the total output

To calculate the average variable cost, divide the total variable cost by the total output.

## Average Variable Cost Definition

The average variable cost is defined as the ratio of the variable cost to the total output of a business or good.

## How to calculate average variable cost?

How to calculate average variable cost?

**First, determine the variable cost.**This is the total variable cost of the process or product being analyzed.

**Next, determine the total output.**This is the total output quantity produced. For example, the production of 100 units of a product.

**Finally, calculate the average variable cost.**Calculate the average variable cost using the formula above.

## FAQ

**What is average variable cost?**

The average variable cost is defined as the ratio of the variable cost to the total output of a business or good.