Enter the total change in savings and the total change in income into the calculator to determine the marginal propensity to save.

MPS Formula

The following formula is used to calculate the marginal propensity to save.

MPS = dS / dI
• Where MPS is the marginal propensity to save
• dS is the change in savings ($) • dI is the change in income ($)

To calculate the marginal propensity to save (MPS), divide the change in savings by the change in income.

MPS Definition

MPS, known as marginal propensity to save, is a measure of how much extra money a person saves when they receive an increase in income.

MPS Example

How to calculate marginal propensity to save?

1. First, determine the change in savings.

Measure the total change in savings amount per period.

2. Next, determine the change in income.

Calculate the total change in income.

3. Finally, calculate the marginal propensity to save.

Calculate the MPS using the equation above.

FAQ

What is MPS?

MPS stands for a marginal propensity to save. It’s a measure of how much extra a person saves with a change in income. The closer the MPS is to 1, the greater the savings rate of the person.