Microeconomics

Marginal Revenue Calculator

Divide the change in total revenue by the change in quantity sold to find the marginal revenue per extra unit.

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Revenue & quantity change

$

Enter the changes to see marginal revenue.

Worked example

With these example inputs:

  • Change in revenue$8,400
  • Change in quantity120

Marginal revenue: $70.00

  • If the first figure were 10% higher$77.00

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Frequently asked questions

What is marginal revenue?

Marginal revenue is the extra revenue from selling one more unit. If revenue rises $5,000 when 200 more units sell, marginal revenue is $25 per unit.

What is it used for in practice?

Firms maximise profit where marginal revenue equals marginal cost. Tracking it shows whether selling more is still adding to the bottom line.