Marginal Revenue Calculator

Quick answer

The marginal revenue calculator works out the extra revenue from selling one more unit – the change in total revenue divided by the change in quantity – from prices and quantities before and after.

$
$
Initial total revenue
$ —
New total revenue
$ —
Marginal revenue
$ —

For a firm in perfect competition marginal revenue equals price. A firm facing a downward-sloping demand curve must cut price to sell more, so marginal revenue is below price.

How to use the Marginal Revenue Calculator

  1. Initial price
  2. Initial quantity
  3. New price
  4. New quantity

Results update as you type, and every field accepts the units shown in its menu.

How it works

Enter the price and quantity before and after the change.

Tips

  • Use consistent periods (a year or a quarter) for flow figures and period-end values for balances.
  • Average opening and closing balances when a ratio mixes a flow with a stock.
  • Benchmark against competitors in the same industry.
  • Read the ratio together with others – profitability, liquidity and efficiency tell different stories.

Common mistakes to avoid

  • Using sales instead of cost of goods sold for inventory ratios.
  • Mixing gross, operating and net profit.
  • Ignoring one-off items that distort a single year.

Inputs explained

Field What to enter
Initial price Amount in your currency
Initial quantity A number
New price Amount in your currency
New quantity A number

What each result means

  • Initial total revenue = [Initial price]×[Initial quantity]
  • New total revenue = [New price]×[New quantity]
  • Marginal revenue = ([New total revenue] – [Initial total revenue])÷([New quantity] – [Initial quantity])

Example values

How the main result changes when Initial price changes and everything else stays at the example values above:

Initial price Marginal revenue
10 109
15 59
20 9
25 -41
30 -91
40 -191

Formula

Total revenue = price × quantityMarginal revenue = (new revenue − old revenue) ÷ (new quantity − old quantity)

Worked example

Inputs — Initial price: $20; Initial quantity: 1,000; New price: $19; New quantity: 1,100.
Results — Initial total revenue = $20,000.00; New total revenue = $20,900.00; Marginal revenue = $9.00.

Frequently asked questions

What is marginal revenue?

The extra revenue from selling one more unit.

Why is marginal revenue less than price for a monopoly?

Selling more requires lowering the price on all units.

Can marginal revenue be negative?

Yes, when demand is inelastic and a price cut lowers total revenue.

What formula does the Marginal Revenue Calculator use?

Total revenue = price × quantity.

Sources

  1. Corporate Finance Institute – financial ratios

Cite this calculator

Speedy Calculator. (2026). Marginal Revenue Calculator. Speedy Calculator. https://speedycalculator.com/calculators/finance/marginal-revenue/