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What is unit price?

Unit price

Unit price is the value of a single unit of measure. When you have products sold in multiple quantities and sizes, such as bottles, it enables you to calculate the average price.

Where have you heard about unit price?

Unit prices are commonly found in supermarkets to show you the advantage of buying in bulk. For example, which is better – 9 toilet rolls for £4.50 or 6 toilet rolls for £3.30? For 9, the unit price is 50p (4.50/9), while for 6 it’s 55p (3.30/6). So the best bargain is 9 for £4.50. Savvy shoppers will always check the unit price before buying.

What you need to know about unit price.

A unit price can be applied to a fund or unit trust. A fund’s unit price is the price per each share in the fund. Each share is representative of a unit of ownership in the fund’s basket of securities. The unit price is determined by the fund's net asset value.

Most personal pensions are now unit-linked plans. With your monthly contributions you buy units in a fund, which is priced on a daily basis, so if the fund increases in value, the price of your units goes up.

Find out more about unit price.

Read our definition of unit cost to discover the differences to unit price.

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