This marginal revenue calculator helps you determine the additional income generated from selling one more unit of a good or service.
Marginal Revenue Calculator
How to Use the Calculator
To use the Marginal Revenue Calculator, simply input the change in revenue and the change in quantity of sold items. Click “Calculate” to receive the marginal revenue value. The change in revenue is the difference in revenue from one level of output to another. The change in quantity is the increase or decrease in units sold.
How the Results are Calculated
The calculator determines marginal revenue by dividing the change in total revenue by the change in quantity of the goods sold. The formula is:
MR = ΔTR / ΔQ
where MR is marginal revenue, ΔTR is the change in total revenue, and ΔQ is the change in quantity sold.
Limitations of the Calculator
The Marginal Revenue Calculator does not take into account factors such as market conditions, production costs, or other variable expenses that may affect revenue. It purely calculates the revenue received for each additional unit sold and should be used as a guide, not an absolute indicator of performance.
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