How to calculate average total cost

Average total cost formula

How to calculate average total cost in Excel

To calculate the ATC in Microsoft Excel, please follow the following simple steps:

  • Enter the data as per the below image in columns “Quantity Produced” and “Variable Cost” to calculate the “Total Variable Cost”.
  • Enter the “Fixed Cost” data.
  • Use the formula to calculate the total cost involved in an individual product produced as “Total Cost = Total Variable Cost + Fixed Cost
  • Finally, calculate the “Average Total Cost” by using the average formula in Excel.

As in the example image, type the formula “=AVERAGE(G3:G5)” in the cell, where “G3:G5” shows the range of cells comprising the data of total cost.

Press Enter to find Average Total Cost, the outcome column shown in the cell where you entered the formula as in the example cell is “G6”.

Average Total Cost ATC Excel
Average Total Cost Formula in Excel