Cost Calculator

Calculate total cost, average cost per unit and profit at a given production volume.

What is the Cost Calculator?

Total cost combines fixed costs, which don’t change with volume, and variable costs, which rise with each unit produced.

How does it work?

Total cost = fixed costs + variable cost per unit × units. Average cost per unit falls as volume rises because fixed costs are spread over more units.

Formula

Total cost = Fixed + Variable × Units
Average cost = Total ÷ Units

Example

₹1.5 lakh fixed costs and ₹220 per unit for 1,000 units: total cost ₹3.7 lakh, average cost ₹370 per unit.

Frequently asked questions

Why does average cost fall with volume?

Fixed costs are shared across more units — this is economies of scale.

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