Finance

High-Low Method Calculator

Separate mixed costs into fixed and variable components using highest and lowest activity levels.

Highest Activity Period

Activity Level (Units)

Total Cost ($)

Lowest Activity Period

Activity Level (Units)

Total Cost ($)

Predict Cost at Activity Level

Optional — estimate cost at a specific level

High-Low Method:
Variable Cost/Unit = (High Cost − Low Cost) / (High Units − Low Units)
Fixed Costs = Total Cost − (Variable Rate × Units)
Total Cost = Fixed + (Variable × Units)

Understanding the High-Low Method

The High-Low method is a simple way to estimate fixed and variable cost components from historical data. While less accurate than regression analysis, it provides a quick approximation using only two data points.