Fixed Cost Calculator

Reviewed By: Scott Hickam (MBA, Finance)

Enter the total fixed cost for a given time period (e.g., a month) and the total number of units to calculate the average fixed cost per unit. You can also use the calculator to solve for total fixed cost or units when the other two values are known. Additional tabs calculate break-even units and total cost from fixed and variable costs.

Pick a scenario, fill the fields, and click Calculate.

Per‑Unit Fixed Cost

Break‑Even Units

Total Cost (FC + VC)

Total Fixed Costs ($ / month)

Not sure? Pick a typical business Units produced / sold in that period

Fixed Cost Formula

The following equations can be used to calculate total fixed cost and average fixed cost per unit.

FC = TC - VC AFC = FC / Q = (TC - VC) / Q

Where FC is the total fixed cost (for the period analyzed)
TC is the total cost (for the same period)
VC is the total variable cost (for the same period)
AFC is the average fixed cost per unit
Q is the number of units produced or sold in that period

Fixed Cost Definition

A fixed cost is a cost that does not change with the level of output (within a relevant range) during a given time period—examples include rent, insurance, salaried labor, and equipment leases. Average fixed cost converts that total fixed cost into a per-unit amount: AFC = FC / Q.

Fixed Cost Example

How to calculate fixed cost and average fixed cost?

The following example outlines the steps to calculate total fixed cost and then average fixed cost per unit for a physical product over one month.

The first step is to set a time period to analyze (for example, one month).

Next, determine the total number of units produced during that time. In this case, the total number of units is 500 for the month.

Next, determine total cost and total variable cost for the same period. In this case, total cost is $20,000.00 and total variable cost is $12,000.00.

First, calculate total fixed cost:

FC = TC − VC

FC = $20,000 − $12,000 = $8,000

Then, calculate average fixed cost per unit:

AFC = FC / Q

AFC = $8,000 / 500 = $16.00 per unit

FAQ

What is a fixed cost?

A fixed cost is a cost that stays the same as output changes (within a relevant range) over a given time period—for example, rent or insurance. If you divide total fixed cost by the number of units produced (Q), you get average fixed cost (AFC).