Calculate Fixed Costs High Low Method

Calculate Fixed Costs: High-Low Method




Introduction & Importance

The high-low method is a simple and effective way to calculate fixed costs. It’s crucial for businesses to understand and manage their fixed costs to ensure profitability and sustainability.

How to Use This Calculator

  1. Enter the variable costs per unit.
  2. Enter the number of units produced.
  3. Enter the total costs.
  4. Click ‘Calculate’.
Demonstrating the high-low method for calculating fixed costs Real-world example of the high-low method in action

For more information, see the BLS CPI Calculator and the NBER Working Paper on Cost Accounting.

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