Enter the total price and the total number of units bought into the calculator. The calculator will evaluate and display the price per unit. This calculator can also evaluate the total price or number of units given the other variables.

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

To calculate price per unit, simply divide the total price by the total number of 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?

  1. First, determine the total price.

    Determine the total price of the entire lot of product.

  2. Next, determine the total units.

    Calculate the total quantity of units produced in the lot.

  3. Finally, calculate the price per unit.

    Using the formula above, calculate the price per unit.

FAQ

What is price per unit?

A price per unit is the average price per unit of product that a business charges to a customer.