Enter the total price and the total number of units bought into the calculator. The calculator will evaluate and display the price per unit.
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Price Per Unit Formula
The following formula is used to calculate the average price per unit of goods or services.
PPU = TP/TU
- Where PPU is the price per unit
- TP is the total price
- TU is the total units
Price Per Unit Definition
A price per unit is the average price of a good or service gave a total price and total units. Using a price per unit analysis can help consumers and producers make effective decisions using the average price of a unit instead of the actual price. Average prices can help decide whether you are paying too much or too little.
Price Per Unit Example
How to calculate price per unit?
- First, determine the total price.
Determine the total price of the entire lot of product.
- Next, determine the total units.
Calculate the total quantity of units produced in the lot.
- Finally, calculate the price per unit.
Using the formula above, calculate the price per unit.
A price per unit is the average price per unit of product that a business charges to a customer.