Cost Per Unit Calculator

Formula

The formula to calculate the Cost Per Unit (CPU) is:

\[ \text{CPU} = \frac{\text{TC}}{\text{TU}} \]

Where:

$\text{CPU}$ is the cost per unit ($/unit)
$\text{TC}$ is the total cost ($)
$\text{TU}$ is the total number of units

What is Cost Per Unit?

A cost per unit is a metric used to describe the cost to produce, purchase, or buy one unit of anything. This could be the cost per unit for a manufacturing plant to make a product or a store’s cost to purchase one unit of product for their shelves. It can be used in any manner of way.

Example Calculation

Let's assume the following values:

Total Cost (TC) = $1000
Total Number of Units (TU) = 50

Using the formula:

\[ \text{CPU} = \frac{1000}{50} = 20 \]

The Cost Per Unit (CPU) is $20 per unit.