Marginal Revenue Calculator

What this tool does

This calculator computes marginal revenue across multiple production levels. Enter the quantity produced and price per unit at each level. The tool builds a complete table showing total revenue and marginal revenue for every step.

Most online marginal revenue calculators only handle a single calculation. Two data points in, one number out. This tool lets you map your full production curve so you can see exactly where marginal revenue hits zero or goes negative.

It’s built for anyone running unit economics: product managers, operations leads, business students, or founders figuring out the right production volume. For a deeper walkthrough of the concept, see our guide on how to calculate marginal revenue.

How it works

1. Enter quantity and price per unit for each production level. Start with your lowest output and work up.
2. Click “Calculate Marginal Revenue.” The tool sorts your data by quantity and computes total revenue (quantity x price) and marginal revenue (change in total revenue / change in quantity) for each step.
3. Review the results table. Positive marginal revenue appears in green. Negative appears in red.
4. Check the insight box for a plain-English summary of what your numbers mean.

You can add more rows at any time. Empty rows are ignored.

The marginal revenue formula

Marginal revenue measures how much additional revenue you earn from selling one more unit:

MR = Change in Total Revenue / Change in Quantity

For example, if producing 3 units at $30 each generates $90 in total revenue, and producing 4 units at $25 each generates $100, the marginal revenue of that fourth unit is ($100 - $90) / (4 - 3) = $10.

Total revenue at each level is quantity multiplied by price per unit.

When marginal revenue turns negative

The most useful output from this calculator is the inflection point where producing more units starts losing money instead of making it.

This happens when lowering prices to sell more units backfires. The price reduction applied to all units outweighs the revenue from extra sales. At that point, total revenue decreases.

In practice, you should produce up to the quantity where marginal revenue hits zero. That’s your revenue-maximizing output level. Anything beyond that reduces total revenue.

Supported inputs

• Quantity: Any non-negative number (integers or decimals)
• Price per unit: Any non-negative dollar amount
• Minimum rows: 2 (you need at least two production levels to calculate a change)
• Maximum rows: Unlimited

Data is sorted by quantity automatically, so you can enter rows in any order.