High-Low Method Calculator

Separate a mixed cost into its fixed and variable components using the high-low method, based on your highest and lowest activity levels.

Highest Activity (units)

units

Cost at Highest Activity

Lowest Activity (units)

units

Cost at Lowest Activity

What is the high-low method?

The high-low method is a cost-accounting technique used to separate a mixed cost (one with both fixed and variable elements) into its fixed and variable components using only the highest and lowest activity levels observed.

The formulas

Variable Cost per Unit = (Highest Cost − Lowest Cost) / (Highest Activity − Lowest Activity)
Fixed Cost = Highest Cost − (Variable Cost per Unit × Highest Activity)

This method is simple but sensitive to outliers, since it ignores every data point except the two extremes. It’s best used as a quick estimate rather than a precise cost model.

Last reviewed August 2026