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

## How to Calculate Incremental Profit?

The following example problems outline how to calculate Incremental Profit.

Example Problem #1

1. First, determine the price per unit (\$). In this example, the price per unit (\$) is given as 600 .
2. Next, determine the cost per unit (\$). For this problem, the cost per unit (\$) is given as  300 .
3. Next, determine the number of units. In this case, the number of units is found to be 20.
4. 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 (\$)