Marginal Cost Calculator

Your details

Period comparison: supply old and new cost and quantity totals. Direct: enter the changes directly.
Total production cost before the change in output.
USD
Total production cost after increasing output.
USD
Number of units produced before the change.
units
Number of units produced after the change.
units
The additional revenue earned from selling one more unit. Leave at 0 to skip the profit comparison.
USD
Fixed costs (rent, equipment) that do not change with output. Used to split per-unit fixed and variable components.
USD
Marginal CostProfitable to expand
0.25USD/unit

Additional cost of producing one more unit (delta cost / delta qty).

Change in Total Cost500USD
Change in Quantity2,000units
Average Total Cost (new)0.4583USD/unit
Average Fixed Cost (new)0.25USD/unit
Average Variable Cost (new)0.2083USD/unit
Marginal Profit per Unit0.1USD/unit
Production decisionExpand production (MR > MC - each extra unit adds profit)
Marginal Cost (USD/unit)0.25
Avg Total Cost (USD/unit)0.4583
Marginal Profit (USD/unit)0.1

Marginal cost is $0.2500 per additional unit.

  • Producing 2,000 more units adds $500.00 to your total cost.
  • Marginal cost ($0.2500) is below average total cost ($0.4583), so expanding is pulling your average cost down - a sign of economies of scale.
  • Each extra unit earns $0.1000 more in revenue than it costs to make. Expanding output increases total profit.
  • Marginal cost typically follows a U-shaped curve: it falls as fixed costs are spread over more units, then rises when capacity constraints or input scarcity create diminishing returns.

Next stepCompare marginal cost to your selling price (marginal revenue) at every production level, not just this one, to map the full profit-maximizing range.

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