Marginal Propensity to Save Calculator



Marginal Propensity to Save Calculator helps calculating the Marginal Propensity to Save.



What is Marginal Propensity to Save?

In economics, Marginal Propensity to Save (MPS) refers to the proportion of an aggregate raise in pay that a consumer spends on saving rather than on the consumption of goods and services.

Marginal Propensity to Save is a component of Keynesian macroeconomic theory.



The Formula of Marginal Propensity to Save

The basic formula of the Marginal Propensity to Save is as follows:

Marginal Propensity to Save = change in saving / change in income



Example of Marginal Propensity to Save

Suppose you receive an additional 10,000 dollars in your salary, and as a result you decide to save an additional 3,000 dollars, your marginal propensity to save is 0.3 (3,000 dollars change in saving divided by 10,000 dollars change in income).



Marginal Propensity to Save Calculator











Suppose you receive an additional 10,000 dollars in your salary, and as a result you decide to:

to consume an additional 1,000 dollars, your marginal propensity to consume is 0.1, and your marginal propensity to save is 0.9.

to consume an additional 2,000 dollars, your marginal propensity to consume is 0.2, and your marginal propensity to save is 0.8.

to consume an additional 1,000 dollars, your marginal propensity to consume is 0.3, and your marginal propensity to save is 0.7.

to consume an additional 1,000 dollars, your marginal propensity to consume is 0.4, and your marginal propensity to save is 0.6.

to consume an additional 1,000 dollars, your marginal propensity to consume is 0.5, and your marginal propensity to save is 0.5.

to consume an additional 1,000 dollars, your marginal propensity to consume is 0.6, and your marginal propensity to save is 0.4.

to consume an additional 1,000 dollars, your marginal propensity to consume is 0.7, and your marginal propensity to save is 0.3.

to consume an additional 1,000 dollars, your marginal propensity to consume is 0.8, and your marginal propensity to save is 0.2.

to consume an additional 1,000 dollars, your marginal propensity to consume is 0.9, and your marginal propensity to save is 0.1.

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