Average Fixed Cost (AFC) Calculator

Your details

All costs that do not change with output: rent, base salaries, insurance, equipment depreciation, loan repayments, property taxes, and so on.
The total number of items manufactured or services delivered in the period you are analysing.
units
Turn on to add average variable cost and average total cost to your results.
All costs that scale with output: raw materials, piece-rate labour, sales commissions, packaging, shipping, and so on.
A second production level to compare. The calculator shows how much AFC drops when you reach this volume.
units
Currency
Average Fixed Cost (AFC)Moderate fixed-cost intensity
12

Fixed cost per unit at your current output

Average Variable Cost (AVC)8
Average Total Cost (ATC)20
AFC at scaled output6
AFC saving per unit at scale6
Total cost (period)200,000
Fixed cost share of total0.6%
AFC (current)12
AFC (at scale)6

Your average fixed cost is 12.0000 per unit.

  • At 10,000 units, every unit you make or sell absorbs 12.0000 in fixed costs.
  • Doubling (or changing) output to 20,000 units cuts AFC to 6.0000 - a saving of 6.0000 per unit (50.0% less).
  • Fixed costs account for 60.0% of your average total cost. A balanced cost structure - both fixed and variable levers matter for margin improvement.

Next stepUse AFC together with average variable cost and marginal cost to set a floor for pricing. Prices must at minimum cover average total cost over the long run.

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