Marginal Revenue

The Marginal Revenue calculator computes the marginal revenue based on the change in total revenue and the change in amount sold.

INSTRUCTIONS:  Choose units and enter the following:

• (ΔTR)  Change in total revenue
• (ΔAS) Change in amount sold

Marginal Revenue(MR): The calculator returns the marginal revenue in U.S. dollars.  However this can be automatically converted to compatible units via the pull-down menu.

Related Calculators

• Price Elasticity of Demand
• Price Elasticity of Demand (Mid-point Method)

The Math / Science

The formula for marginal revenue is:

          MR  =  ΔTR /ΔAS 

where:

• MR is the Marginal Revenue
• ΔTR  Change in total revenue
• ΔAS Change in amount sold

Marginal Revenue (MR) is the additional revenue that results from the sale of one more unit of output or the revenue obtained from the last unit sold. While marginal revenue can remain constant over a certain level of output, it follows the law of diminishing returns and will eventually slow down, as the output level increases.