Enter the estimated fixed costs (\$), the estimated variable cost per unit (\$), and the number of units into the Estimated Cost Calculator. The calculator will evaluate and display the Estimated Cost.

## Estimated Cost Formula

The following formula is used to calculate the Estimated Cost.

EC = FC + VCU* X

• Where EC is the Estimated Cost (\$)
• FC is the estimated fixed costs (\$)
• VCU is the estimated variable cost per unit (\$)
• X is the number of units

## How to Calculate Estimated Cost?

The following example problems outline how to calculate Estimated Cost.

Example Problem #1

1. First, determine the estimated fixed costs (\$). The estimated fixed costs (\$) is given as 430 .
2. Next, determine the estimated variable cost per unit (\$). The estimated variable cost per unit (\$) is calculated as  20 .
3. Next, determine the number of units. The number of units is found to be 10.
4. Finally, calculate the Estimated Cost using the formula above:

EC = FC + VCU* X

Inserting the values from above yields:

EC = 430 + 20* 10 = 630.00 (\$)

Example Problem #2

The variables needed for this problem are provided below:

estimated fixed costs (\$) = 600

estimated variable cost per unit (\$) = 5

number of units = 8

Entering these values and solving gives:

EC = 600 + 5*8 = 640 (\$)