MPS Calculator - Marginal Propensity to Save

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Choose whether to compute MPS from two income/savings snapshots, or enter MPS directly to derive MPC and the multiplier.
Household disposable income before the change.
USD
Household disposable income after the change.
USD
Amount saved per year before the income change.
USD
Amount saved per year after the income change.
USD
Optional: enter a fiscal stimulus amount to see how it amplifies through the Keynesian multiplier.
USD
Marginal Propensity to Save (MPS)Moderate saving rate
0.3

Fraction of each extra dollar of income that is saved

Marginal Propensity to Consume (MPC)0.7
Keynesian Spending Multiplier3.33
Change in income10,000USD
Change in savings3,000USD
Multiplied GDP impact33,333USD
MPS as a percentage30%
Saved (MPS)0.3
Consumed (MPC)0.7

MPS = 0.3000 (30.00% of additional income is saved)

  • An MPS of 0.3000 means 30.00% of each additional dollar of income is saved, while 70.00% is spent.
  • The Keynesian spending multiplier is 3.33: every dollar of new government spending or investment generates approximately $3.33 of total economic output.
  • A government injection of $10,000 would produce an estimated total GDP impact of $33,333.

Next stepTo see how MPS changes across income levels, try entering multiple snapshots. Economists note that higher-income households typically have higher MPS values.

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