Marginal Utility Calculator

Enter the final and initial number of units consumed and the initial and final total utility. The calculator will evaluate and display the marginal utility.

Marginal Utility Formula

The following formula is used to calculate the marginal utility of a good or service.

MU = UI – UF / (QF – QI)

  • Where MU is the marginal utility
  • UI is the initial units consumed
  • UF is the final units consumed
  • QF is the final utility
  • QI is the initial utility

What is marginal utility?

Marginal utility is a term used in finance to describe the satisfaction gained by a consumer through consuming additional units of a good. For example, the satisfaction gained from eating an additional donut after eating 1 donut.

In general, the satisfaction will have diminishing returns in units consumed and sometimes negative returns. For example most people would feel sick eating 20 donuts as opposed to 2.

marginal utility calculator

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