Average Fixed Cost Calculator

Calculate fixed cost per unit from total fixed costs and units produced. See how volume changes affect cost per unit.

Use the Average Fixed Cost Calculator

Enter total fixed costs and units produced. Use the sensitivity field to see cost per unit at different volumes.

Fixed costs & volume

Total fixed costs and units produced in the period.

Total fixed costs ($)

Units produced

Volume change for sensitivity (%)

Results

Fixed cost per unit

$12

If volume changes

At +20% volume (1200 units), fixed cost per unit becomes $10. Higher volume spreads fixed costs over more units; lower volume raises cost per unit.

What this metric means

Average fixed cost shows how much of your fixed costs are absorbed per unit at a given volume. It helps with pricing, break-even, and understanding how scale affects unit economics.

How to interpret your result

Use AFC together with variable cost per unit to see full cost per unit. When volume drops, AFC rises—so low volume can make unit economics weak even if variable costs are under control.

FAQs

What is average fixed cost?▾

Average fixed cost (AFC) is total fixed costs for a period divided by the number of units produced. It’s the fixed cost “per unit” and falls as volume increases.

What counts as fixed cost?▾

Costs that don’t change with output in the short run: rent, salaries, insurance, depreciation on equipment, etc. They stay the same whether you make 100 or 1,000 units (within capacity).

Why does AFC fall when volume rises?▾

Fixed costs are a fixed amount; spreading them over more units lowers the cost per unit. That’s why higher volume often improves unit economics until you hit capacity limits.

How do I use this for pricing?▾

AFC plus variable cost per unit gives you full cost per unit at a given volume. Use it to see how volume affects break-even and to set prices that cover total cost at expected sales levels.

What if I have multiple products?▾

You can allocate fixed costs by unit (if products are comparable) or by another driver (e.g. labour hours). Run the calculator per product line if you allocate fixed costs separately.

Related tools

Browse all calculators on NetGrow, including break-even and average variable cost.

Use the Average Fixed Cost Calculator

Enter total fixed costs and units produced. Use the sensitivity field to see cost per unit at different volumes.

Fixed costs & volume

Total fixed costs and units produced in the period.

Total fixed costs ($)

Units produced

Volume change for sensitivity (%)

Results

Fixed cost per unit

$12

If volume changes

At +20% volume (1200 units), fixed cost per unit becomes $10. Higher volume spreads fixed costs over more units; lower volume raises cost per unit.

FAQs

What is average fixed cost?▾

Average fixed cost (AFC) is total fixed costs for a period divided by the number of units produced. It’s the fixed cost “per unit” and falls as volume increases.

What counts as fixed cost?▾

Costs that don’t change with output in the short run: rent, salaries, insurance, depreciation on equipment, etc. They stay the same whether you make 100 or 1,000 units (within capacity).

Why does AFC fall when volume rises?▾

Fixed costs are a fixed amount; spreading them over more units lowers the cost per unit. That’s why higher volume often improves unit economics until you hit capacity limits.

How do I use this for pricing?▾

AFC plus variable cost per unit gives you full cost per unit at a given volume. Use it to see how volume affects break-even and to set prices that cover total cost at expected sales levels.

What if I have multiple products?▾

You can allocate fixed costs by unit (if products are comparable) or by another driver (e.g. labour hours). Run the calculator per product line if you allocate fixed costs separately.