Price Per Unit Formula
Price Per Unit = Total Cost / Number of Units
Step-by-Step Example
You're comparing two supplier quotes: - Option A: 500 units for $875 - Option B: 1,200 units for $1,944
Option A: $875 ÷ 500 = $1.75 per unit Option B: $1,944 ÷ 1,200 = $1.62 per unit
Option B is 7.4% cheaper per unit.
What to Watch For
Different units of measure: Make sure you're comparing the same base unit. "Per ounce" vs "per gram" comparisons need unit conversion first.
Hidden costs: Bulk purchases may include shipping, handling, or storage costs not in the quoted price. Add these before comparing.
Minimum order quantities: The cheapest per-unit price is worthless if you're forced to over-order. Factor in carrying costs.
Use the Price Per Unit Calculator for instant comparison.