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

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## 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?

**First, determine the change in savings.**Measure the total change in savings amount per period.

**Next, determine the change in income.**Calculate the total change in income.

**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.