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MPC Calculator



MPC Calculator helps calculating the Marginal Propensity to consume.



What is MPC?

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

MPC is a component of Keynesian macroeconomic theory.



The Formula of MPC

The basic formula of the MPC is as follows:

MPC = change in Consumption / change in income



Example of MPC

Suppose you receive an additional 10,000 dollars in your salary, and as a result you decide to consume an additional 7,000 dollars, your MPC is 0.7 (7,000 dollars change in consumption divided by 10,000 dollars change in income).



MPC Calculator











Suppose you receive an additional 10,000 dollars in your salary, the MPC Calculator helps you calculate how much more money will you consume.

Accoring to MPC Calculator if you will decide to consume an additional 1,000 dollars, your MPC is 0.1, and your marginal propensity to save is 0.9.

Accoring to MPC Calculator if you will decide to consume an additional 2,000 dollars, your MPC is 0.2, and your marginal propensity to save is 0.8.

Accoring to MPC Calculator if you will decide to consume an additional 1,000 dollars, your MPC is 0.3, and your marginal propensity to save is 0.7.

Accoring to MPC Calculator if you will decide to consume an additional 1,000 dollars, your MPC is 0.4, and your marginal propensity to save is 0.6.

Accoring to MPC Calculator if you will decide to consume an additional 1,000 dollars, your MPC is 0.5, and your marginal propensity to save is 0.5.

Accoring to MPC Calculator if you will decide to consume an additional 1,000 dollars, your MPC is 0.6, and your marginal propensity to save is 0.4.

Accoring to MPC Calculator if you will decide to consume an additional 1,000 dollars, your MPC is 0.7, and your marginal propensity to save is 0.3.

Accoring to MPC Calculator if you will decide to consume an additional 1,000 dollars, your MPC is 0.8, and your marginal propensity to save is 0.2.

Accoring to MPC Calculator if you will decide to consume an additional 1,000 dollars, your MPC is 0.9, and your marginal propensity to save is 0.1.

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