Calculating Price per Ounce

One Way to Save Money on Groceries and Other Household Necessities

Oct 16, 2008

Prices continue to rise, but the average grocery budget is shrinking. Learning how to figure out price per ounce can trim down your grocery spending during tough times.

When it comes to calculating price per unit of their purchases, many grocery shoppers don’t bother. Maybe they think the savings are too small to matter or maybe they’re intimidated by the math. But calculating what you pay per ounce isn’t hard to do, and it can mean substantial savings on groceries and other household necessities.

How to Calculate Price per Ounce

The formula is simple: take the dollar amount of the product and divide it by the number of ounces in the package.

For example, if a 42-ounce canister of oats costs $4.39 at the grocery store then you will be paying 10.4 cents an ounce.

The same principle works for figuring out price per diaper or roll of toilet paper. Simply divide the package price by the number of diapers or rolls per package.

How it Saves You Money

Being able to pinpoint the exact amount you are spending puts you in control of your grocery budget. When a new product comes out, you’ll instantly be able to judge whether it is a better deal that what you’ve currently been buying.

If one brand of diapers costs 18.5 cents per diaper and another costs 25.5 cents per diaper, it doesn’t sound like a big difference. However, the average infant uses 3,160 diapers in his first year—which means a savings of $221 per year for shoppers who buy the first brand over the second.

Or let’s say that your favorite brand of shampoo comes in two sizes: the regular sized 15-ounce bottle or the value-sized 22.5-ounce bottle. Oddly enough, two ounces of shampoo of the same brand will usually cost different amounts if the package size is different. Being able to calculate price per ounce will ensure that you get the best deal on the products you want.

Be Prepared to Calculate on the Spot

You’ve probably noticed that the labels on the shelves beneath products in the store often list price per ounce. Can’t you just trust the grocery store to give you the information you need?

The answer is no, and that’s because grocery stores are there to make a profit. They want you to buy more expensive products, and confusing shoppers is one of their most popular tactics. One label might list the price per ounce, while another will list price per pound. It’s hard to compare apples and oranges, so many shoppers just pick a product and walk away without ever knowing whether they got the better deal.

Don’t let that happen to you! A smart way never to be caught in this situation is to carry a small calculator in your purse or take a few minutes to familiarize yourself with the calculator function on your cell phone. You may feel foolish whipping out a calculator in the store, but once you’ve gotten the hang of calculating price per ounce it will only take a few seconds to do discretely.

Cost-effective grocery shopping begins with knowing how to calculate price per unit every time you’re faced with a purchase. Once you’re in the habit it doesn’t take much time or effort, and you’ll be amazed at how the savings add up.

The copyright of the article Calculating Price per Ounce in Personal Budgeting/Finance is owned by Jenny Evans. Permission to republish Calculating Price per Ounce in print or online must be granted by the author in writing.