What this calculator does
High-low method works out splits a mixed cost into fixed and variable parts from its highest and lowest activity levels. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
The inputs explained
| Field | What to enter |
|---|---|
| Cost at highest activity level ($) | A number, measured in your currency. Starts at 80000. |
| Units at highest activity level | A number. Starts at 12000. |
| Cost at lowest activity level ($) | A number, measured in your currency. Starts at 50000. |
| Units at lowest activity level | A number. Starts at 6000. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with cost at highest activity level
Every other input is held at the calculator’s starting values while cost at highest activity level varies. Select any row to load that scenario into the calculator.
| Cost at highest activity level ($) | Variable cost per unit | Fixed cost | Check: fixed + variable at lowest level |
|---|---|---|---|
| 40,000 | −$1.67 | $60,000.00 | $50,000.00 |
| 60,000 | $1.67 | $40,000.00 | $50,000.00 |
| 80,000 | $5.00 | $20,000.00 | $50,000.00 |
| 120,000 | $11.67 | −$20,000.00 | $50,000.00 |
| 160,000 | $18.33 | −$60,000.00 | $50,000.00 |
| 240,000 | $31.67 | −$140,000.00 | $50,000.00 |