Written and reviewed by FormulaCraft Team. Each formula on this page is run through our verification engine before publishing.
Last reviewed:
How to calculate cost per unit in Excel and Google Sheets
Topic:Finance basicsExcel & Google Sheets
=B2/C2✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Product | Total Cost | Units | Cost Per Unit |
| Widget A | 500 | 100 | |
| Widget B | 750 | 150 | |
| Widget C | 300 | 60 | |
| Widget D | 900 | 180 |
=B2/C2→5
Try it with your data
Edit the grid or formula, then run it through a real spreadsheet engine — no signup.
Sample data — click any cell to edit
Runs server-side · free · no signup
Step by step
- 1Create three columns: Product, Total Cost, Units Produced.
- 2In the Cost Per Unit column (D2), enter =B2/C2 to divide total cost by units.
- 3Copy the formula down for all product rows.
- 4Format the result column as currency for readability.
Tips
- Wrap the formula in IFERROR to handle rows where units are zero: =IFERROR(B2/C2,"N/A").
Need it for your exact data?
Describe your columns in plain English and get the precise formula for your sheet, with the right Excel or Sheets syntax.
Frequently asked
What if my units column has blank or zero values?
Use =IFERROR(B2/C2,0) to return 0 instead of a #DIV/0! error when the units cell is empty or zero.
How do I calculate cost per unit for the entire batch at once?
Use =SUM(B2:B6)/SUM(C2:C6) to get a blended cost per unit across all rows.
More on Finance basics
See all →How-to
How to calculate tiered commission
Apply different commission rates by sales tier using IFS. Works in Excel 2019/365 and Google Sheets.
How-toHow to calculate gross margin
Compute gross margin percentage as (price − cost) / price. Identical in Excel and Google Sheets.
How-toHow to calculate compound interest
Compute a compounded future value with principal × (1 + rate)^years using POWER. Identical in Excel and Google Sheets.
How-toHow to calculate a selling price from a target margin
Use cost and target gross margin percentage to back-calculate the required selling price in Excel or Google Sheets.
How-toHow to calculate simple interest
Multiply principal, rate, and time to compute simple interest using a straightforward formula in Excel or Sheets.
How-toHow to calculate a loan payment
Use the PMT function to calculate periodic loan payments given a principal, interest rate, and number of periods.