How to use the name brand vs generic savings calculator
- List each item you buy, with a short name.
- Enter the name brand price and the store brand price for one package of each.
- Enter how many times you buy that item in a year, such as 52 for weekly.
- Read the savings per year, per month and over five years, plus the savings for each item.
Formula
Saved each = name brand price - store brand price
Saved per year = saved each x times bought per year
Total savings = the sum over all items
Savings % = total savings / name brand cost per year x 100%
Package sizes are assumed to match. If they differ, compare unit prices first.
Three groceries switched to store brands
Cereal costs $4.00 against $3.00 and is bought 52 times, saving $52. Peanut butter at $4.50 against $3.50, bought 26 times, saves $26. Paper towels at $12.00 against $9.00, bought 12 times, save $36. Together that is $114 a year, or $9.50 a month, and $570 over five years.
The name brand versions would cost $469 a year and the store brand versions $355, so switching saves 24.31% of the name brand cost. These prices are examples. Use the ones at your own store.
Why the yearly view helps
A dollar saved on one item looks small, and it adds up when you buy it every week. Multiplying by how often you buy shows what a habit costs over a year.
The five-year figure is the same savings repeated for five years at the same prices, not a forecast of what prices will do.
Compare sizes and quality yourself
Store brands and name brands sometimes come in different package sizes, so the cheaper sticker price is not always the cheaper unit price. The unit price calculator checks that for you.
Whether the store brand is as good is a matter of taste, and the tool says nothing about it. To see how small habits add up, try the latte factor calculator, and to fit the savings into a plan use the budget planner.
Assumptions and limits
- Prices are for one package and stay the same all year.
- The name brand and store brand packages are the same size.
- You buy each item the number of times you enter.
- Coupons, sales and loyalty rewards are not included.
Frequently asked questions
How much can I save by buying generic?
It depends on the items and prices at your store. Enter your own prices and buying frequency and the tool totals the savings for you.
Why compare unit prices too?
A store brand can come in a different size. A lower package price does not always mean a lower price per ounce, so check unit prices before you count on the savings.
Does this include coupons and sales?
No. It uses one regular price for each version. If you often use coupons on the name brand, enter the price you actually pay.
What does the percent mean?
It is the total savings divided by what the name brand items would cost for the year. A figure of 24.31% means switching saves about a quarter of that spending.