Definition
The unit price is the price charged for one unit of a product or service on an invoice line, such as the hourly rate, price per item, or daily fee. Multiplying the unit price by the quantity gives the line total. Showing unit prices lets clients verify the math and compare against the quote.
Also called: Rate, Unit cost, Unit rate
Unit price in practice
For fixed-price work, the quantity is 1 and the unit price equals the line total. For hourly or per-item work, the unit price should match the rate in your contract or estimate.
Frequently Asked Questions
Should the unit price include tax?
Business invoices usually show unit prices excluding tax, with tax calculated on the subtotal. Consumer invoices in some countries must show tax-inclusive prices. Follow local rules and be consistent.