What is the Price Per Unit?
Unit price — price divided by quantity — is the only reliable way to compare pack sizes. Retailers frequently price larger packs at a higher per-unit rate, relying on the assumption that bigger means better value.
Formula & worked example
Worked example: a 500 g pack at ₹180 is ₹0.36 per gram. A 1 kg pack at ₹320 is ₹0.32 per gram — so the large pack is genuinely cheaper, by 11%. Had the 1 kg pack been ₹380, it would have been the worse deal despite looking like bulk value.
How to use this price per unit calculator
- Enter the price and quantity of the first option.
- Do the same for the second, using the same unit for both (both in grams, or both in ml).
- The cheaper unit price is highlighted at the top.
- Weigh that against whether you will actually use the larger quantity.
Smart tips
- Most Indian retailers print unit price on the shelf label in small text — worth training yourself to look for it.
- Larger packs are cheaper only if you finish them. Waste turns a 10% saving into a 100% loss.
- Compare across brands using unit price rather than pack price; pack sizes are deliberately non-comparable.
- Watch for shrinkflation — the same pack at the same price with 10% less inside is a hidden price rise.
Frequently asked questions
How do I calculate price per unit?
Divide the price by the quantity. Make sure both options use the same unit — grams versus kilograms will mislead you.
Are bigger packs always cheaper?
No. Retailers often price large packs at a higher unit rate, assuming shoppers will not check.
What is shrinkflation?
Reducing pack size while keeping the price the same. Unit price reveals it immediately even when the shelf price looks unchanged.
Should I always buy the cheapest unit price?
Only if you will use it before it expires. For perishables, the smaller pack is often the better real-world value.
Want the theory behind the numbers? Read our shopping guides on the Money Blog.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 30 Sep 2026. How we check these numbers.