How to Calculate Selling Price Per Unit

QuotaHack

May 20, 2026

How to calculate selling price per unit — B2B pricing guide

Whether you're quoting a single SKU to a distribution customer or building a full price list for a product line, calculating the correct selling price per unit is the foundation of profitable B2B sales. Get it wrong and you're either losing deals or losing money.

Why Per-Unit Pricing Is Tricky in B2B

Unlike retail, B2B pricing per unit isn't just 'cost plus X%'. Your actual cost per unit depends on order quantity, incoterm, freight mode, customs duties, packaging, storage, and commission structure — all of which change from deal to deal. The Incoterm alone determines which costs land on your side — for a full breakdown, read our guide to Incoterms 2020 explained for importers.

The Core Formula

Selling Price per Unit = Total Landed Cost per Unit ÷ (1 − Target Margin %)

Or if you prefer markup-based pricing:

Selling Price per Unit = Total Landed Cost per Unit × (1 + Markup %)

Not sure which to use? See our explainer on the difference between margin and markup — the formulas produce different results and getting them mixed up is one of the most common pricing errors in B2B sales.

Step 1: Calculate Your Total Cost Per Unit

Add together every cost that applies to your specific deal. This is your landed cost — not just the purchase price:

Net purchase price (after any cash discount)
Inbound freight per unit (freight per pallet ÷ units per pallet)
Import duties per unit
Storage cost per unit
One-time costs (tooling, setup, artwork) amortized over order quantity
Agent commission (if applicable)
Outbound freight per unit (if applicable under your Incoterm)

Worked Example

Gross purchase price EXW: $45.00
Cash discount (2%): −$0.90
Inbound freight (per pallet / 200 units): $1.80
Import duties: $2.25
Storage (15 days × $4/day / 200 units): $0.30
Tooling amortized (order 500 units): $1.00
Total landed cost per unit: $49.45

Step 2: Apply Your Target Margin

With a landed cost of $49.45 and a target margin of 30%:

Selling Price = $49.45 ÷ (1 − 0.30) = $49.45 ÷ 0.70 = $70.64 per unit

If you prefer to work from a markup percentage instead, the formula is: Selling Price = Landed Cost × (1 + Markup %). For a step-by-step guide to that approach, see how to calculate selling price using markup percentage.

Step 3: Account for Incoterm Obligations

The Incoterm you're quoting determines which costs belong in your price. Under DDP, you bear everything including import duties. Under EXW, the buyer handles all transport. Always confirm the Incoterm before building your per-unit price.

EXW: Seller bears nothing beyond making goods available; buyer bears all freight, duties, delivery
FOB: Seller bears export customs + loading to vessel; buyer bears ocean freight, import duties, delivery
DAP: Seller bears all freight to destination; buyer bears import duties only
DDP: Seller bears everything including import duties; buyer bears nothing

Common Mistakes in Per-Unit Price Calculations

Using EXW purchase price as cost base when you're quoting DAP or DDP
Forgetting to amortize one-time costs (tooling, setup) across the order quantity
Confusing margin % with markup % in the formula — see margin vs markup explained
Not adjusting unit cost when the order quantity changes (freight and one-time costs dilute differently)

Selling Unit Basis: It's Not Always Per Single Unit

In many B2B categories, pricing isn't quoted per single unit but per 100 pieces, per 1,000 pieces, per pallet, or per kg. Make sure you're consistent: if freight is quoted per pallet and you have 200 units/pallet, divide by 200 to get per-unit freight.

Automate Per-Unit Pricing With QuotaHack

The QuotaHack B2B Pricing Calculator was built specifically for this workflow. Input your gross purchase price, select your Incoterm, enter freight and duty data — and it instantly outputs the correct sell price per unit, per 100 pcs, per pallet, or per kg.

→ Start your free trial — calculate selling price per unit across any Incoterm in seconds.