Split a mixed cost into fixed and variable parts using its highest and lowest activity levels.
Please do not make financial decisions based on these results.
What is the High-Low Method Calculator?
Split a mixed cost into fixed and variable parts using its highest and lowest activity levels. To use the High-Low Method Calculator, enter highest activity, cost at highest activity, lowest activity, cost at lowest activity, planned activity; it returns variable cost per unit, fixed cost, predicted cost at planned activity, and shows them instantly as you type.
Where the High-Low Method Calculator fits
Split a mixed cost into fixed and variable parts using its highest and lowest activity levels. The main figure it returns is the Variable cost per unit, worked out from the values you enter.
It belongs with the other business planning tools. If you are comparing options or checking a result from another angle, try the Break-even Calculator, FIFO Calculator for Inventory or the Average Fixed Cost Calculator.
How to use the High-Low Method Calculator
- Fill in the fields. You will need Highest activity (units), Cost at highest activity ($), Lowest activity (units), Cost at lowest activity ($), Planned activity (units). Use figures from the same period (same month, quarter or year) for every field. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Variable cost per unit, and the cards below show Fixed cost, Predicted cost at planned activity. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the High-Low Method Calculator using the default values shown in the calculator above:
Inputs
| Highest activity (units) | 9,000 |
|---|---|
| Cost at highest activity ($) | 56,000 |
| Lowest activity (units) | 3,000 |
| Cost at lowest activity ($) | 32,000 |
| Planned activity (units) | 6,000 |
Results
| Variable cost per unit | $4.00 |
|---|---|
| Fixed cost | $20,000.00 |
| Predicted cost at planned activity | $44,000.00 |
With these inputs the calculator returns Variable cost per unit: $4.00. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Highest activity (units) from 9,000 to 10,800 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Variable cost per unit | $4.00 | $3.08 | -23.1% |
| Fixed cost | $20,000.00 | $22,769.23 | +13.8% |
| Predicted cost at planned activity | $44,000.00 | $41,230.77 | -6.3% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the High-Low Method Calculator reports Variable cost per unit, fixed cost and predicted cost at planned activity. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What is the high-low method used for?
It gives a quick estimate of fixed and variable cost from only two data points.
Are the results forecasts?
No. They apply the formula shown to the numbers you enter, so the output is only as realistic as your assumptions.
What is the most important number for a new business?
Cash runway. A profitable plan still fails if cash runs out first, so check burn rate and break-even together.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
Related business planning calculators
- Break-even Calculator
- FIFO Calculator for Inventory
- Average Fixed Cost Calculator
- 3D Printer - Buy vs Outsource Calculator
- PVGO Calculator
- Price / Quantity Calculator
- Accumulated Depreciation Calculator
- Build vs. Buy Calculator
- Cost of Doing Business Calculator
- Cost Function Calculator
- Direct Material Price Variance Calculator
- EVM Calculator
All Business Planning calculators →