Rate vs. Price — What's the Difference?
By Tayyaba Rehman — Updated on October 23, 2023
Rate refers to a measure or quantity considered in relation to another measure or quantity (e.g., speed or charge), while Price is the amount of money expected, required, or given in payment for something.
Difference Between Rate and Price
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Key Differences
Rate often connotes a ratio or a comparison between two quantities. For instance, one could reference an exchange rate between two currencies, indicating the proportion at which one currency can be traded for another. Price, however, is more straightforward and signifies the monetary value attached to a product or service.
When we talk about rates, we often think in terms of recurrence or consistency, such as interest rates which are typically set annually. In contrast, a price is usually a one-time cost associated with a purchase. For example, when buying a car, one considers the price, but when taking out a loan for that car, one might be concerned with the interest rate.
It's common to see rate applied in scenarios where there's a time component, such as rates of speed, growth, or change. A car's rate of acceleration or a company's rate of revenue growth are instances of this usage. Price doesn't possess this temporal aspect; instead, it simply reflects the cost of an item or service at a given moment.
In some contexts, however, rate and price can overlap. For instance, when discussing hotel rooms or advertisements, we might hear references to "room rates" or "advertising rates." Here, "rate" is used synonymously with price, indicating the cost of a room per night or the cost of an ad per impression.
In industries like utilities or telecommunications, customers might be charged based on a rate (e.g., per kilowatt-hour or per minute). Yet, when these customers see their bills, they often think of the amount due as the price for the service they received. The rate is the underlying metric, while the price is the total monetary amount due.
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Comparison Chart
Definition
Measure or quantity in relation to another.
Amount of money given or asked for a product or service.
Temporal Component
Often involves time or recurrence.
Generally a fixed value at a given moment.
Contextual Application
Used in ratios, comparisons, or proportions.
Used to indicate the monetary cost of an item or service.
Examples
Speed, interest, exchange.
Cost of goods, services, or commodities.
Synonymous Usage
Can sometimes be used in place of "price" in specific contexts like room rates.
Generally not used in place of "rate."
Compare with Definitions
Rate
A measure of a quantity in relation to another quantity.
The rate of change in temperature is alarming.
Price
The amount of money required for a particular item or service.
The price of the dress is $50.
Rate
A fixed ratio between two related quantities or entities.
The exchange rate between the dollar and the euro fluctuates daily.
Price
The cost or value of something.
The price of success is hard work.
Rate
Speed or velocity of movement or action.
The car was traveling at a rate of 60 miles per hour.
Price
The negative consequences faced as a result of an action.
He paid the price for his mistakes.
Rate
A quantity measured with respect to another measured quantity
A rate of speed of 60 miles an hour.
Price
To determine the monetary value of something.
They priced the house at $300,000.
Rate
A measure of a part with respect to a whole; a proportion
The mortality rate.
A tax rate.
Price
A price is the (usually not negative) quantity of payment or compensation given by one party to another in return for one unit of goods or services. In some situation, the price of production has a different name.
Rate
The cost per unit of a commodity or service
Postal rates.
Price
The amount as of money or goods, asked for or given in exchange for something else.
Rate
A charge or payment calculated in relation to a particular sum or quantity
Interest rates.
Price
The cost at which something is obtained
Believes that the price of success is hard work.
Rate
Level of quality.
Price
The cost of bribing someone
Maintained that every person has a price.
Rate
Often rates Chiefly British A locally assessed property tax.
Price
A reward offered for the capture or killing of a person
A felon with a price on his head.
Rate
To place in a particular class, rank, or grade
Rated the film PG13.
Rated the bonds at junk level.
Price
(Archaic) Value or worth.
Rate
To specify the performance limits of, especially according to a standard scale
This fuse is rated at 50 amperes. The fishing line is rated for 30 pounds.
Price
To fix or establish a price for
Shoes that are priced at sixty dollars.
Rate
To regard or consider as having a certain value
Rated the movie excellent.
Rated him a fine cook.
Price
To find out the price of
Spent the day pricing dresses.
Rate
Chiefly British To value for purposes of taxation.
Price
The cost required to gain possession of something.
Rate
To set a rate for (goods to be shipped).
Price
The cost of an action or deed.
I paid a high price for my folly.
Rate
(Informal) To merit or deserve
People that rate special treatment.
An idea that rates attention.
Price
Value; estimation; excellence; worth.
Rate
To be ranked in a particular class
A wine that rates higher than any other.
Price
(transitive) To determine the monetary value of (an item); to put a price on.
Rate
(Informal) To have status, importance, or influence
Tea-flavored ice cream doesn't rate highly in my book.
Price
To pay the price of; to make reparation for.
Rate
To berate.
Price
To set a price on; to value; to prize.
Rate
To express reproof.
Price
To ask the price of.
To price eggs
Rate
(obsolete) The worth of something; value.
Price
The sum or amount of money at which a thing is valued, or the value which a seller sets on his goods in market; that for which something is bought or sold, or offered for sale; equivalent in money or other means of exchange; current value or rate paid or demanded in market or in barter; cost.
We can afford no more at such a price.
Rate
The proportional relationship between one amount, value etc. and another.
At the height of his powers, he was producing pictures at the rate of four a year.
Price
Value; estimation; excellence; worth.
Her price is far above rubies.
New treasures still, of countless price.
Rate
Speed.
The car was speeding down here at a hell of a rate.
Price
Reward; recompense; as, the price of industry.
'T is the price of toil,The knave deserves it when he tills the soil.
Rate
The relative speed of change or progress.
The rate of production at the factory is skyrocketing.
Price
To pay the price of.
With thine own blood to price his blood.
Rate
The price of (an individual) thing; cost.
He asked quite a rate to take me to the airport.
Price
To set a price on; to value. See Prize.
Rate
A set price or charge for all examples of a given case, commodity, service etc.
Postal rates here are low.
Price
To ask the price of; as, to price eggs.
Rate
A wage calculated in relation to a unit of time.
We pay an hourly rate of between $10 – $15 per hour depending on qualifications and experience.
Price
The amount of money needed to purchase something;
The price of gasoline
He got his new car on excellent terms
How much is the damage?
Rate
Any of various taxes, especially those levied by a local authority.
I hardly have enough left every month to pay the rates.
Price
The property of having material worth (often indicated by the amount of money something would bring if sold);
The fluctuating monetary value of gold and silver
He puts a high price on his services
He couldn't calculate the cost of the collection
Rate
(nautical) A class into which ships were assigned based on condition, size etc.; by extension, rank.
This textbook is first-rate.
Price
Value measured by what must be given or done or undergone to obtain something;
The cost in human life was enormous
The price of success is hard work
What price glory?
Rate
(obsolete) Established portion or measure; fixed allowance; ration.
Price
The high value or worth of something;
Her price is far above rubies
Rate
(obsolete) Order; arrangement.
Price
A reward for helping to catch a criminal;
The cattle thief has a price on his head
Rate
(obsolete) Ratification; approval.
Price
Cost of bribing someone;
They say that every politician has a price
Rate
(horology) The gain or loss of a timepiece in a unit of time.
Daily rate; hourly rate; etc.
Price
United States operatic soprano (born 1927)
Rate
(transitive) To assign or be assigned a particular rank or level.
She is rated fourth in the country.
Price
Determine the price of;
The grocer priced his wares high
Rate
(transitive) To evaluate or estimate the value of.
They rate his talents highly.
Price
Ascertain or learn the price of;
Have you priced personal computers lately?
Rate
(transitive) To consider or regard.
He rated this book brilliant.
Price
A sum of money offered for a reward or return.
There's a price on his head after escaping from prison.
Rate
(transitive) To deserve; to be worth.
The view here hardly rates a mention in the travel guide.
Rate
(transitive) To determine the limits of safe functioning for a machine or electrical device.
The transformer is rated at 10 watts.
Rate
To evaluate a property's value for the purposes of local taxation.
Rate
To like; to think highly of.
The customers don't rate the new burgers.
Rate
(intransitive) To have position (in a certain class).
She rates among the most excellent chefs in the world.
He rates as the best cyclist in the country.
Rate
(intransitive) To have value or standing.
This last performance of hers didn't rate very high with the judges.
Rate
(transitive) To ratify.
Rate
To ascertain the exact rate of the gain or loss of (a chronometer) as compared with true time.
Rate
(transitive) To berate, scold.
Rate
To chide with vehemence; to scold; to censure violently; to berate.
Go, rate thy minions, proud, insulting boy!
Conscience is a check to beginners in sin, reclaiming them from it, and rating them for it.
Rate
To set a certain estimate on; to value at a certain price or degree.
To rate a man by the nature of his companions is a rule frequent indeed, but not infallible.
You seem not high enough your joys to rate.
Rate
To assess for the payment of a rate or tax.
Rate
To settle the relative scale, rank, position, amount, value, or quality of; as, to rate a ship; to rate a seaman; to rate a pension.
Rate
To ratify.
Rate
To be set or considered in a class; to have rank; as, the ship rates as a ship of the line.
Rate
To make an estimate.
Rate
Established portion or measure; fixed allowance.
The one right feeble through the evil rateOf food which in her duress she had found.
Rate
That which is established as a measure or criterion; degree; standard; rank; proportion; ratio; as, a slow rate of movement; rate of interest is the ratio of the interest to the principal, per annum.
Heretofore the rate and standard of wit was different from what it is nowadays.
In this did his holiness and godliness appear above the rate and pitch of other men's, in that he was so . . . merciful.
Many of the horse could not march at that rate, nor come up soon enough.
Rate
Valuation; price fixed with relation to a standard; cost; charge; as, high or low rates of transportation.
They come at dear rates from Japan.
Rate
A tax or sum assessed by authority on property for public use, according to its income or value; esp., in England, a local tax; as, parish rates; town rates.
Rate
Order; arrangement.
Thus sat they all around in seemly rate.
Rate
Ratification; approval.
Rate
The gain or loss of a timepiece in a unit of time; as, daily rate; hourly rate; etc.
Rate
The order or class to which a war vessel belongs, determined according to its size, armament, etc.; as, first rate, second rate, etc.
Rate
Amount of a charge or payment relative to some basis;
A 10-minute phone call at that rate would cost $5
Rate
A magnitude or frequency relative to a time unit;
They traveled at a rate of 55 miles per hour
The rate of change was faster than expected
Rate
The relative speed of progress or change;
He lived at a fast pace
He works at a great rate
The pace of events accelerated
Rate
Assign a rank or rating to;
How would you rank these students?
The restaurant is rated highly in the food guide
Rate
Be worthy of or have a certain rating;
This bond rates highly
Rate
Estimate the value of;
How would you rate his chances to become President?
Gold was rated highly among the Romans
Rate
A measure of occurrence or frequency over time.
The birth rate in some countries is declining.
Rate
A charge or payment that is set in accordance with a standard scale.
The hourly rate for the job is $20.
Common Curiosities
Are rate and price synonymous?
Not always, but in some contexts like "room rates," they can be.
What's an example where rate and price might be used together?
When calculating the price of electricity used, based on a rate per kilowatt-hour.
Does rate always involve a time component?
Often, but not always. For example, exchange rates don't directly involve time.
Can price be non-monetary?
Yes, "price" can refer to consequences or sacrifices made.
Is rate always a fixed value?
No, rates like interest or exchange rates can fluctuate.
Can rate refer to speed?
Yes, as in "rate of speed" or "rate of travel."
Does a higher rate always mean more cost?
Not necessarily. A higher rate of efficiency, for instance, might mean cost savings.
Is the interest rate the same as the price of a loan?
No, the interest rate determines the cost of borrowing, but the total price includes principal, interest, and other fees.
Why might a product have a higher price?
Due to higher production costs, brand reputation, quality, or market demand.
How is the price of an item determined?
Factors can include cost of production, demand, and competition, among others.
Can a sale impact the price but not the rate?
Yes, a product might be on sale (reduced price) but the tax rate on it remains the same.
Can both "rate" and "price" be used in negative contexts?
Yes, one might face a high rate of failure or pay a high price (consequence) for mistakes.
Are there contexts where "rate" means "price"?
Yes, like "room rates" in hotels or "advertising rates."
Can the word "price" be used as a verb?
Yes, as in "The items were priced at $10 each."
What's an example where "price" is non-monetary?
"The price of freedom is eternal vigilance."
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Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
