How to compare unit prices and find the better deal

Compare package sizes correctly by calculating the cost per ounce, pound, item, or other common unit.

Quick answer: Divide the package price by the number of units it contains. A $6 package with 24 ounces costs $0.25 per ounce. Compare that with the cost per ounce of the other option—the lower unit price is cheaper per unit.

The unit-price formula

Package price alone does not tell you which option is cheaper because packages can contain different amounts. Unit price puts both products on the same scale.

Choose one shared unit before comparing. If one label uses pounds and another uses ounces, convert them first. One pound equals 16 ounces.

Unit price = package price ÷ quantity in the package

Example: two different package sizes

A 16-ounce package costs $5.20, so its unit price is $0.325 per ounce. A 24-ounce package costs $6.96, which equals $0.29 per ounce. The larger package costs more at checkout but is cheaper for each ounce.

To estimate the savings, subtract the two unit prices and multiply by the amount you expect to buy or use.

When the lowest unit price is not the best purchase

The cheapest price per unit saves money only if you use the product. A larger package can be wasteful if food spoils, storage is limited, or you are trying a product for the first time.

Quality also matters. Compare like with like—similar ingredients, durability, concentration, or performance. A concentrated cleaner may appear expensive per ounce but require much less for each use.

  • Check whether the units are identical.
  • Account for coupons and discounts before dividing.
  • Consider spoilage, storage, and how quickly you use the item.
  • Compare cost per use when products have different concentrations.

How to include a discount

Calculate the sale price first, then divide by the package quantity. For a $10 item discounted by 20%, the sale price is $8. If it contains 32 units, the discounted unit price is $0.25 per unit.

Frequently asked questions

Is a lower unit price always better?

It is cheaper per unit, but not necessarily the better purchase if you will waste part of the larger package.

How do I compare pounds with ounces?

Convert pounds to ounces by multiplying by 16, then calculate both prices per ounce.

Should I include sales tax?

Usually both items have the same tax treatment, so pretax unit prices are enough. Include tax if the products are taxed differently.

Want help with the calculation?

Use the discount calculator

Published August 3, 2026 · Reviewed for clarity and source accuracy.