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Average Variable Cost Calculator

LAST UPDATE: August 25th, 2018

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What is average variable cost?

AVC is the average cost per unit of costs that are variable (only incurred for each unit of production). There are different from fixed costs, which are costs that are incurred regardless of the number of items produced.

Formula

Average Variable Costs = Total Variable Costs / Quantity

Example

Total variable costs are $300,000 and 400 units are produced.

Average Variable Costs = $300,000 / 400 = $750

Therefore, average variable costs are $750 per unit.

Sources and more resources

WikipediaAverage Variable Cost – A short page on AVC and how it is calculated.