What Are Fixed Costs?
Fixed costs are business costs that do not change with the level of production or sales over a given period, such as rent, insurance, salaried staff, and software subscriptions. They must be paid even when sales are zero, and they are the costs that break-even analysis measures against contribution margin.
Fixed Per Unit
Total fixed costs stay the same, but fixed cost per unit falls as volume rises, because the same total is spread over more units.
🧮 Calculate It Yourself
Put Fixed Costs into practice with this free calculator — no sign-up, nothing stored.
🔗 Related Terms
More Business & Sales Terms
- Accounts Payable
- Accounts Receivable
- Average Order Value (AOV)
- Balance Sheet
- Burn Rate
- Cash Flow Statement
📖 Browse all glossary terms or explore all free calculators.
Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.