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 ($)