# What is the unit price?

Listing all products with different quantities can be a bit confusing when generating bills. The billing regulations require that the concept of unit price appear, to avoid this type of mess.

When we talk about unit price, as the name suggests, we mean the quantity per unit (which has only been counted once) of a product or a service. The unit price should not include the amount of the deduction of the IVA, as it only indicates the unit quantity that must be incurred to acquire the product.

When an invoice is created, the following is usually indicated: the concept of the item or service to be purchased; the amount to be purchased; the unit price of each product / service; the total amount; the deduction of VAT together with the final amount to be paid.

We must not confuse it with the concept of sale price. The sale price represents the price at which the product or service that the sale has manufactured is sold. Said sale price may or may not coincide with the unit price. This will depend on whether or not it is decided to include a margin on the unit price or not. If so, obviously, the sale price will be higher than the unit price (or in any case the same).

## Calculate the unit price

To calculate the unit price, multiple factors must be taken into account. In general, we will have to make an approximate calculation of how much certain elements affect the unit price more than others. These elements are: labor, the materials used for its manufacture, the necessary machinery, the cost of electricity, water, the margin that you want to obtain, etc. However, it will be the company that decides how important its impact will be on the unit price of the product.

Nowadays, doing this calculation is not so complicated, since there are specialized programs or software capable of obtaining the optimal price. Additionally, hiring mathematicians or accountants can help us meet our goals previously checked.

Sales price calculator

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