# High-Low Method Calculator

URL: https://speedycalculator.com/calculators/finance/high-low-method/
Last updated: 2026-10-25

> The high-low method calculator separates a mixed cost into its fixed and variable parts using the highest and lowest activity levels, then estimates total cost at any activity level.

## Inputs

- Cost at highest activity
- Units at highest activity
- Cost at lowest activity
- Units at lowest activity
- Units to estimate

## Results

- Variable cost per unit
- Total fixed cost
- Estimated total cost

## Formula

```
Variable cost per unit = (cost at high − cost at low) ÷ (high units − low units)
Fixed cost = cost at high − variable cost × high units
Total cost at x = fixed cost + variable cost × x
```

## Explanation

The high-low method is a quick way to estimate cost behaviour from past data, using only two points. It is simple but sensitive to unusual months; regression gives a better fit when you have many data points.

### How to use the High-Low Method Calculator

- **Cost at highest activity**
- **Units at highest activity**
- **Cost at lowest activity**
- **Units at lowest activity**
- **Units to estimate**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the total cost and units at the highest and lowest activity levels, and the activity level you want to estimate.

### Tips

- Use figures for the same period (a month, a quarter or a year) for every input so ratios compare like with like.
- Track the metric over time – the trend usually tells you more than a single value.
- Compare your result with industry benchmarks, which vary a lot between sectors.
- Treat the result as a starting point for a decision, then check the assumptions behind each input.

### Common mistakes to avoid

- Mixing monthly and yearly numbers in the same calculation.
- Using revenue where the formula needs profit (or the other way round).
- Forgetting hidden costs such as taxes, fees, overheads or your own time.

### Inputs explained

FieldWhat to enterCost at highest activityAmount in your currencyUnits at highest activityA numberCost at lowest activityAmount in your currencyUnits at lowest activityA numberUnits to estimateA number

### What each result means

- **Variable cost per unit** = ([Cost at highest activity] - [Cost at lowest activity])÷([Units at highest activity] - [Units at lowest activity])
- **Total fixed cost** = [Cost at highest activity] - [Variable cost per unit]×[Units at highest activity]
- **Estimated total cost** = [Total fixed cost] + [Variable cost per unit]×[Units to estimate]

### Example values

How the main result changes when **Cost at highest activity** changes and everything else stays at the example values above:

Cost at highest activityEstimated total cost15,50016,812.523,25021,656.2531,00026,50038,75031,343.7546,50036,187.562,00045,875

## Worked example

Inputs — Cost at highest activity: $31,000; Units at highest activity: 9,000; Cost at lowest activity: $19,000; Units at lowest activity: 5,000; Units to estimate: 7,500.

Results — Variable cost per unit = $3.00; Total fixed cost = $4,000.00; **Estimated total cost = $26,500.00**.

## FAQ

**What is the high-low method?**
A cost-accounting technique that uses the highest and lowest activity points to split fixed and variable costs.

**What is its main weakness?**
It ignores all data except two points, which may be outliers.

**Should I pick the highest cost or the highest activity?**
Use the highest and lowest activity levels, not costs.

**What formula does the High-Low Method Calculator use?**
Variable cost per unit = (cost at high − cost at low) ÷ (high units − low units).