Cost Per Unit Calculator
Calculate manufacturing cost per unit from fixed and variable costs. Find break-even units, compare volumes, and determine required selling price.
Cost Per Unit
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Total Cost —
Break-Even Units —
Extended More scenarios, charts & detailed breakdown ▾
Cost Per Unit
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Total Cost —
Professional Full parameters & maximum detail ▾
Unit Cost Breakdown
Direct Cost/Unit —
Scrap-Adjusted Cost/Unit —
Total Cost/Unit (incl. fixed) —
Pricing & Totals
Required Selling Price —
Total Production Cost —
How to Use This Calculator
- Enter your total fixed costs (rent, equipment, salaries that don't change with volume).
- Enter the variable cost per unit (materials, direct labor per piece).
- Enter the number of units you plan to produce.
- Optionally enter a selling price to see break-even units.
- Use the Professional tier to break costs into material, labor, overhead, packaging, and shipping with scrap rate adjustment.
Formula
Cost Per Unit = (Fixed Costs + Variable Cost × Units) ÷ Units
Break-Even Units = Fixed Costs ÷ (Selling Price − Variable Cost/Unit)
Example
Example: Fixed costs $10,000, variable cost $5/unit, 1,000 units → Cost/unit = ($10,000 + $5,000) ÷ 1,000 = $15/unit. At selling price $25: Break-even = $10,000 ÷ ($25 − $5) = 500 units.
Frequently Asked Questions
- Cost per unit is the total production cost divided by the number of units made. It includes both fixed costs (rent, equipment) allocated per unit and variable costs (materials, labor) per unit.
- Fixed costs are divided by total units. At 1,000 units with $10,000 fixed costs, each unit carries $10 of fixed cost. At 5,000 units, it drops to $2 — this is economies of scale.
- Break-even is the minimum number of units you must sell at a given price to cover all costs. Formula: Break-even = Fixed Costs ÷ (Selling Price − Variable Cost per Unit).
- Fixed costs remain constant regardless of production volume (rent, salaries, equipment). Variable costs scale with production (materials, direct labor, packaging per unit).
- Scrap rate accounts for defective units. If your scrap rate is 5%, you need to produce 100/95 = 1.053 units to yield one good unit, increasing your effective cost per good unit.