Money & Finance · Lesson 6 of 14
Comparing Prices and Unit Costs
Unit cost is the price of one unit. Divide the price by the amount to compare packs of different sizes.
- Primary
- Updated
What you will learn
- Find the unit cost of an item.
- Compare two packs fairly.
- Know that cheaper per unit is not always better.
Before you start: you should be able to divide decimals and convert pounds to pence. See Multiplying Prices and Sharing Bills.
The idea
A bigger pack usually costs more, but is it better value? To compare fairly, find the price for one unit: one item, one litre or g. This is the unit cost.
Method
- Convert the price to pence if that is easier.
- Divide the price by the amount to get the cost of one unit.
- Compare the unit costs. Lower is better value.
Not always the best choice
A cheaper unit cost only helps if you will use it all. A large pack that goes off before you use it wastes money.
Worked examples
Example 1: Per 100 g
A 500 g pack costs £1.20.
- p for g.
- p per g.
Answer: 24p per 100 g
Example 2: Per item
pens cost £5.40.
- .
Answer: 45p each
Example 3: Better value
24p per 100 g or 22p per 100 g?
- Compare: .
Answer: the second pack
Tip: compare in the same unit: both per 100 g, or both per item.
Why it matters
Unit costs help you compare prices in shops, online and on bills. Discounts also change the price, see discounts and sale prices.
Practice
Your turn. Type or choose an answer, then press Check. Getting one wrong is fine, that is what practice is for. You can try as many times as you like.