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Marginal Revenue Calculator

LAST UPDATE: August 27th, 2018

Calculator

What is marginal revenue?

Marginal revenue, or MR, is the incremental revenue from selling an additional unit.

MR changes depending on how many units are sold. For example, the first 10 units could sell for $100. To sell the next 10 units (#11 – 20), however, they would have to sell for $90. The next 10 units (#21 – 30) would only sell for $80. In this case, the marginal revenue of selling unit #22 would be $80. The marginal revenue of selling unit #9 would be $100.

Formula

Marginal Revenue = Change in Total Revenue / Change in Quantity

Example

Change in total revenue is $200 and change in quantity is 1,000 units.

Marginal Revenue = $200 / 1,000 = 0.20

Therefore, marginal revenue is 0.20.

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