Marginal Revenue Calculator

Marginal Revenue (MR) is an essential concept in economics and business. It refers to the additional revenue a company earns by selling one more unit of a product or service. Businesses use marginal revenue to determine the optimal production level, pricing strategies, and profit maximization.

Our Marginal Revenue Calculator makes this process simple. You just enter revenue and quantity details, and it instantly computes the marginal revenue for you.

Formula for Marginal Revenue

The general formula for marginal revenue is:

 $MR=\frac{\Delta R}{\Delta Q}$

Where:

• $MR$ = Marginal Revenue
• $\Delta R$ = Change in Revenue
• $\Delta Q$ = Change in Quantity

Step 1: Calculate Change in Revenue

$\Delta R=R_2-R_1$

Where:

• $R_2$​ = Total Revenue at Current Quantity
• $R_1$​​​​​​​​ = Total Revenue at Previous Quantity

Step 2: Calculate Change in Quantity

$\Delta Q=Q_2-Q_1$​​​​​​​

Where:

• $Q_2$​ = Current Quantity
• $Q_1$​​​​​​​​ = Previous Quantity

Step 3: Calculate Marginal Revenue

$MR=\frac{R_2-R_1}{Q_2-Q_1}$

This is the most widely used formula for marginal revenue.

Example Calculation

Suppose a company increases its sales from 100 units to 120 units. At 100 units, the total revenue was $5,000, and at 120 units, the total revenue increased to $6,200.

Step 1: Change in Revenue

$\Delta R=R_2-R_1=6200-5000=1200$

Step 2: Change in Quantity

$\Delta Q=Q_2-Q_1=120-100=20$

Step 3: Marginal Revenue

$MR=\frac{\Delta R}{\Delta Q}=\frac{1200}{20}=60$​​​​​​​

✅ Marginal Revenue = $60 per unit