Marginal Cost Calculator

Advanced calculator for marginal cost analysis using discrete data or a quadratic cost model with instant charting live table updates CSV and PDF export helpful defaults and clear formulas ideal for operations finance students and entrepreneurs optimizing production scale and evaluating incremental cost behavior across quantities Supports dual input modes and example dataset included

Advanced Mode
Constant component of total cost.
Linear variable cost per unit.
Captures increasing marginal cost (congestion).
Generates rows from Q=0 to Qmax.
Quantity (Q) Total Cost (TC) Actions

Tip: Enter Q in ascending order. Marginal cost is computed as ΔTC/ΔQ between successive rows.

Results
Q Total Cost (TC) Marginal Cost (MC)

MC curve is derived from your inputs. For discrete data the MC value for a row reflects the change from the previous row.

Formulas Used
  • Cost Function Mode: Let total cost be TC(Q) = FC + v1·Q + v2·Q². Then marginal cost is the derivative with respect to quantity: MC(Q) = dTC/dQ = v1 + 2·v2·Q.
  • Discrete Data Mode: For successive observations (Qi-1, TCi-1) and (Qi, TCi) with ΔQ = Qi - Qi-1 > 0, compute MCi = (TCi - TCi-1) / ΔQ.
  • Interpretation: MC approximates the incremental cost of one additional unit at quantity Q. A rising MC suggests capacity constraints or diminishing returns.

Units are arbitrary (e.g., dollars and units). Ensure consistency across inputs.

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Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.