How to Read and Compare Unit Prices to Save Hundreds Per Year
When you walk into a grocery store or shop online, you’re constantly bombarded with different brands, packaging sizes, and price points. But if you only look at the sticker price, you might be leaving hundreds of dollars on the table each year.
The secret to maximizing savings without sacrificing quality? Understanding and comparing unit prices.
The U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) maintains a list of states where unit pricing is supposed to be disclosed. Even if your state is not on this list, you may find that some retailers still list unit prices.
In this guide, I’ll break down what unit pricing is, how to calculate it, and how it can help you make smarter, more cost-effective shopping decisions, whether you’re buying groceries, household essentials, or even big-ticket bulk items.
What Is Unit Pricing?
Unit pricing shows you the cost per unit of measure (e.g., per ounce, per pound, per liter, per roll) rather than just the total price. It helps you compare different product sizes and brands to determine which one gives you the most value for your money.
For example, let’s look at the sticker prices of Bounty Quick Size Paper Towels from Amazon.com as an example:
A pack of 8 paper towels (117 sheets per roll) costs $23.20
A pack of 12 paper towels (117 sheets per roll) costs $33.72
A pack of 16 paper towels (117 sheets per roll) costs $41.32
A pack of 12 paper towels (140 sheets per roll) costs $37.99
At first glance, the 8-pack of 117 sheets per roll seems the cheapest.
But if you check the unit price (cost per 100 sheets), you will see that the 16-pack of 117 sheets per roll is the cheapest:
A pack of 8 paper towels (117 sheets per roll) is $2.48/100 sheets
A pack of 12 paper towels (117 sheets per roll) is $2.40/100 sheets
A pack of 16 paper towels (117 sheets per roll) is $2.21/100 sheets
A pack of 12 paper towels (140 sheets per roll) is $2.26/100 sheets
Next time you visit the grocery store or a retailer, look for the unit price on the price sticker. Where I live in Massachusetts, it is often found on an orange square in the corner of the price tab like this:
How to Calculate Unit Prices If It Is Not Provided or If It’s Not Clear
To compare products, use a standard unit of measure to manually calculate the unit price. There are also several apps in the app store, such as ClevCalc, that can help you standardize prices and make the most cost effective decision.
In the last example I compared the same brand of Bounty paper towels across varying quantities.
Now let’s dive into a very tricky example comparing Amazon Basic Paper Towels and Wal-Mart’s Great Value brand paper towels.
Amazon Basics 2-Ply Flex-Sheets Paper Towels, 12 Basics Rolls: $21.72
According to the picture on Amazon’s website, the 12 Basic Rolls come as two 6-packs. And on the front of the packaging (as you can see below), there is 412.5 sq. ft. or 150 sheets per roll.
If you multiply this by 2 (two 6-packs), you get 825 total sq. ft.
If you multiply the 150 sheets per roll by 12 rolls, you get 1,800 total sheets.
Great Value Ultra Strong Paper Towels, 12 Triple Rolls: $22.56
According to the picture on Wal-Mart’s website, the12 Triple Rolls come as two 6-packs. And on the front of the packaging (as you can see below), there is 446.1 sq. ft. or 165 sheets per roll.
If you multiply this by 2 (two 6-packs), then you get 892.2 total sq. ft.
If you multiply the 165 sheets per roll by 12 rolls, then you get 1,980 total sheets.
The Comparison
Amazon Basics Paper Towels
$21.72 sticker price divided by 825 sq. ft. = $0.026 per sq. ft.
$21.72 sticker price divided by 18 (1,800 sheets divided by 100)= $1.21 per 100 sheets.
Wal-Mart Great Value Paper Towels
$22.56 sticker price divided by 892.2 sq. ft. = $0.025 per sq. ft.
$22.56 sticker price divided by 19.8 (1,980 sheets divided by 100)= $1.14 per 100 sheets.
Conclusion: Assuming similar quality (determined through reviews or trial and error), the Wal-Mart paper towels offer better value than the Amazon Basics paper towels.
Annual Savings Calculation:
The average American family uses 72-80 rolls of paper towels per year. For kicks, let’s assume the average amount of sheets in a roll of paper towels across manufacturers is about 2,880 sheets (or 28.8 on a per 100 sheet basis). On a per year basis, that is between 207,360 and 230,400 sheets of paper towels per year (or 2,073.60 and 2,304.00 on a per 100 sheet basis). As shown above, purchasing the Wal-Mart paper towels saves $0.07 per 100 sheets, assuming prices remain static throughout the year. That results in savings between $145 and $161 per year!
While that may not seem like a lot on the surface, think about how much you can save if you are doing this exact same exercise across all groceries and household products you buy! If you make these smarter unit price choices across all your household essentials, you could easily save $500-$1,500 per year just by switching to lower unit price options.
Other Considerations
1. Be Careful, Bigger Isn’t Always Cheaper or Better
Sometimes, bulk purchases save money, but brands use “price traps,” offering larger sizes that cost more per unit than smaller ones, assuming you won’t check the math.
Generally, I find that this is a common practice when the packaging is more convenient. For example, a big jug of orange juice that has a handle might be more expensive on a per-ounce basis than a small jug with no handle. Or those tiny soda cans that you buy because you hate wasting soda. Well guess what, you often pay a premium and are sometimes better off buying the bigger cans and dumping whatever you don’t finish instead of paying a premium for the smaller cans.
2. Different Brands, Different Pricing Tricks
A premium brand’s “family-size” box might still cost more per unit than a regular-sized generic brand. Always compare unit prices across brands!
3. Subscription and Multi-Pack Deals Aren’t Always a Bargain
Stores may advertise “Buy 3 for $10” deals, but a single unit might be cheaper when not on sale.
4. Online vs. In-Store Prices
Retailers sometimes price products differently online and in-store, and the unit price can shift. Always double-check when shopping online!
5. Warehouse Stores (Costco, Sam’s Club, BJ’s) vs. Grocery Stores
Bulk stores can offer savings, but not always. If you’re paying for a membership, just make sure the savings justify it. In other words, don’t buy a membership and only go 3 times a year.
With four children under five, I can attest that we save thousands of dollars per year by shopping at BJ’s. I check unit prices and clip all the manufacturer coupons within the app. It is so simple and easy. We also share a membership (many memberships allow two users), thereby reducing our membership costs! The app tracks your annual savings, helping you monitor and justify your membership.
Smart Shopping Habits to Maximize Savings
Compare per-unit costs, not just sticker prices.
Look out for bulk pricing tricks (not all bigger sizes save money).
Check sales & promotions carefully (are they actually cheaper per unit?)
Use price-tracking apps for better deals.
Stock up on long-lasting essentials when unit prices are low. Would have been extremely beneficial in 2021 ahead of the insane inflation we just experienced these past 4 years!
Final Thoughts: Small Savings Add Up Big Over Time
Understanding unit prices isn’t just a money-saving trick; it’s an essential financial habit that can add thousands of dollars to your pocket over the years. Whether you’re buying groceries, cleaning supplies, or personal care items, a few extra seconds spent comparing unit prices can lead to massive savings over time.
Next time you shop, don’t just grab the cheapest-looking item- check the unit price and save smart!
Do you check unit prices? What have you learned in your experience buying specific products using the unit price method? Comment below so we can all learn and save together!