Average Fixed Cost Calculator
Use this calculator to estimate fixed cost per unit (AFC). It’s a simple metric for unit economics: take your total fixed costs for a period and divide by the number of units produced or sold in that same period.
Last updated: January 2026
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Fixed costs that don’t vary with output (rent, salaries, insurance, depreciation, etc.).
Units produced or sold in the same period as the fixed costs.
Result
Average fixed cost
$12.50 / unit
AFC = Total fixed cost ÷ Number of units
Total fixed cost
$250,000.00
Units
20,000
How to Use Average Fixed Cost
Use it to
pressure-test pricing
Key idea
spread fixed costs
Connect it to
break-even analysis
Quick Example
If total fixed cost is $250,000 and you produce 20,000 units:
Average Fixed Cost Formula (and what it means)
Average fixed cost is one of the simplest “per-unit” metrics. It doesn’t tell the full story (you still need variable costs and pricing), but it’s a fast way to understand how fixed overhead behaves as output changes.
Formula
AFC = Total fixed cost ÷ Units“Fixed” means the cost doesn’t change with output in the short run (e.g. rent). “Average” means per unit.
How AFC behaves
- If fixed cost is stable, increasing output decreases AFC.
- If output falls, AFC rises (the same overhead is spread across fewer units).
- AFC alone doesn’t include variable costs—use it alongside margins and break-even analysis.
Frequently Asked Questions
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