Unit Price Explained: A 2026 Guide for Australian Shoppers and Investors

Unit price is the cost of a single standardised measure of a product or investment. In supermarkets, it’s usually shown as the price per 100g, per litre, or per item. In investing, it’s the value of one unit in a managed fund, ETF, or superannuation account. Knowing the unit price helps you compare options fairly, regardless of packaging or branding.

Everyday Examples

• Groceries: When you see two brands of rice, one might be $3 for 500g and another $5 for 1kg. The unit price tells you which is cheaper per 100g, making it easier to choose the best value.
• Investments: If you hold units in a managed fund, the unit price tells you how much each unit is currently worth. This helps you track your investment’s value over time.

Australian supermarkets are required to display unit prices for most packaged groceries. This makes it easier to compare products, even when pack sizes or brands differ. In recent years, regulations have been updated to ensure unit prices are clearer and more widely available, including for online shopping.

How to Use Unit Price When Shopping

• Look beyond discounts: Special offers like “2 for $7” may not always be the best value. Check the unit price to see which product gives you more for your money.
• Compare different sizes and brands: Sometimes larger packs are cheaper per unit, but not always. Shrinking pack sizes and changing offers mean it pays to check each time.
• Online shopping: Unit prices are now required to be displayed online, but they may not always be prominent. Take a moment to find and compare them before adding items to your cart.

Common Pitfalls

• Misleading pack sizes: A bigger pack doesn’t always mean a lower unit price. Always check the label.
• Temporary specials: Sometimes, a discounted item may still have a higher unit price than a regular-priced alternative.

Unit price is also central to how managed funds, ETFs, and superannuation accounts work. When you invest in these products, your money buys units. The value of each unit—the unit price—changes as the value of the fund’s assets rises or falls.

How Unit Price Works in Investments

• Managed funds and ETFs: The unit price is calculated by dividing the total value of the fund’s assets by the number of units on issue. This is usually updated daily.
• Superannuation: Most super funds show your balance as a number of units multiplied by the current unit price. Fees and investment returns are reflected in the unit price.
• Buying and selling: The price you pay or receive for units can change from day to day. In volatile markets, unit prices can move quickly, affecting the value of your investment.

What to Watch For

• Performance over time: A rising unit price usually means your investment is growing, but it’s important to compare performance over longer periods and against similar products.
• Fees: Some fees are deducted before the unit price is published. Always check the Product Disclosure Statement (PDS) for details on fees and costs. For more on this, see insurance brokers.

Grocery Shopping Example

You’re choosing between two brands of olive oil. Brand A is $8.50 for 500ml, and Brand B is $11.50 for 750ml. Calculating the unit price, Brand A is $1.70 per 100ml, while Brand B is $1.53 per 100ml. Brand B offers better value per unit, even though the upfront cost is higher.

Investment Example

Suppose you invest in a managed fund. The unit price is $2.00 when you buy, and later it rises to $2.20. If you sell, you benefit from the increase. If the unit price falls, your investment’s value decreases. Understanding unit price helps you track these changes and make informed decisions.

For Shoppers

• Plan ahead: Make a list and check unit prices online before shopping.
• Stay alert: Don’t assume bigger packs or specials are always better value—check the unit price each time.
• Use available tools: Many shopping apps and supermarket websites display unit prices to help you compare.

For Investors

• Monitor regularly: Review your investment statements to see how unit prices are changing.
• Understand what affects unit price: Market movements, fees, and fund performance all play a role.
• Diversify: Don’t rely on a single investment. Spreading your money across different assets can help manage risk if unit prices fluctuate.

• Shrinkflation: Sometimes, products shrink in size but keep the same price, raising the unit price. Always check the latest unit price, not just the pack size.
• Hidden fees: In investments, some fees are built into the unit price. Read the PDS and ask questions if you’re unsure.
• Short-term focus: Whether shopping or investing, don’t focus only on today’s unit price. Consider trends and your long-term goals.

With living costs and market changes affecting Australians, unit price remains a key tool for making informed choices. Whether you’re stretching your grocery budget or tracking your investments, understanding unit price helps you get the most from your money.

What is unit price?

Unit price is the cost per standard unit of measure, such as per 100g or per litre for groceries, or per unit for investments. It allows you to compare value across different products or investments.

How do I find unit prices when shopping online?

Most major Australian supermarkets display unit prices next to the product price online. Look for the price per 100g, per litre, or per item.

Why do investment unit prices change?

Investment unit prices change as the value of the underlying assets in the fund rises or falls. Market conditions, fees, and returns all affect the unit price.

Can unit price help me save money?

Yes. By comparing unit prices, you can identify better value at the supermarket and make more informed investment decisions.