Marginal Cost Calculator
Divide the change in total cost by the change in quantity produced to find marginal cost, what it costs to make one additional unit.
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Enter the change in cost and quantity to see marginal cost.
Worked example
With these example inputs:
- Change in total cost$5,000
- Change in quantity200
Marginal cost: $25.00
- If the first figure were 10% higher$27.50
Frequently asked questions
What is marginal cost?
Marginal cost is the extra cost of producing one more unit, the change in total cost divided by the change in output. It guides pricing and production decisions.
Why does marginal cost matter?
Firms maximise profit where marginal cost equals marginal revenue. If making one more unit costs less than it earns, it is worth producing.