Enter the price per unit ($), the cost per unit ($), and the number of units into the calculator to determine the Incremental Profit.

## Incremental Profit Formula

The following formula is used to calculate the Incremental Profit.

IP = (PPU - CPU) * U

- Where IP is the Incremental Profit ($)
- PPU is the price per unit ($)
- CPU is the cost per unit ($)
- U is the number of units

To calculate incremental profit, subtract the cost per unit from the price per unit, then multiply by the number of units.

## How to Calculate Incremental Profit?

The following example problems outline how to calculate Incremental Profit.

**Example Problem #1**

- First, determine the price per unit ($). In this example, the price per unit ($) is given as 600 .
- Next, determine the cost per unit ($). For this problem, the cost per unit ($) is given as 300 .
- Next, determine the number of units. In this case, the number of units is found to be 20.
- Finally, calculate the Incremental Profit using the formula above:

IP = (PPU – CPU) * U

Inserting the values from above yields:

IP = (600 – 300) * 20 = 6000 ($)

**Example Problem #2**

The variables needed for this problem are provided below:

price per unit ($) = 150

cost per unit ($) = 40

number of units = 15

Entering these values and solving gives:

IP = (150-40) * 15 =1650** **($)