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How to calculate Profit per unit

The Profit per unit formula, with plain worked examples you can check yourself.

Profit per unit = P − V − F ÷ Q

Worked examples

P = 80 · V = 24 · F = 500 · Q = 100Profit per unit = 51
P = 70 · V = 21 · F = 1000 · Q = 500Profit per unit = 47
P = 20 · V = 6 · F = 200 · Q = 100Profit per unit = 12

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Costs & Break-even.

Related terms

Fixed costsVariable costsCost of goods soldOverheadDepreciationDirect costs

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