Cost Per Quantity Calculator

Formula

The formula to calculate the Cost Per Quantity (CPQ) is:

\[ \text{CPQ} = \frac{\text{TC}}{\text{TQ}} \]

Where:

$\text{CPQ}$ is the cost per quantity ($/quantity)
$\text{TC}$ is the total cost ($)
$\text{TQ}$ is the total quantity

What is Cost Per Quantity?

Cost per quantity defines the average cost of one unit of quantity. The quantity can be a single piece or a group of pieces. It is a useful metric for understanding the cost efficiency and pricing strategy of products or services.

Example Calculation

Let's assume the following values:

Total Cost (TC) = $1000
Total Quantity (TQ) = 250

Using the formula:

\[ \text{CPQ} = \frac{1000}{250} = 4 \]

The Cost Per Quantity (CPQ) is $4 per unit.