Enter Q1, Q2, P1 and P2 into this deadweight loss calculator to determine the total deadweight loss of a good or service.

## Deadweight loss formula

Deadweight loss = 1/2 * (Q2-Q1)*(P2-P1)

- Where Q1 is the current quantity the good is being produced at
- Q2 is the quantity of good at equilibrium
- P1 is the price of the good at Q1
- P2 is the price of the good at Q2

## Deadweight Loss Definition

Deadweight loss is defined as the loss of economic efficiency when a product or service is not socially available in the optimal quantity.

## How to calculate deadweight loss?

How to calculate deadweight loss?

**First, determine the quantity of the good.**Measure the current quantity of the good and the quantity of the good at equilibrium.

**Next, determine the price of the good at both points.**Measure the price of the good a the current quantity and optimal quantity.

**Finally, calculate the deadweight loss.**Using the formula above, calculate the deadweight loss.

## FAQ

**What is deadweight loss?**

Deadweight loss is defined as the loss of economic efficiency when a product or service is not socially available in the optimal quantity.