If you want to find the marginal cost, then you can use our marginal cost calculator.
What is marginal cost?
Marginal cost is the variation that occurred in the price per additional unit of production. To have a clear concept, it is the incremental cost if you increase the quantity of your product by a single unit. You can use it to estimate the amount needed for the total production in the market. You can also use it to grow your small-scale business to a large-scale business. It is the best source to get an idea about the increase in the cost per unit, helping you to enhance the business level.
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Formula of Marginal Cost Calculator
The formula to calculate the marginal cost is:
MC = ΔTC/ ΔQ
MC = marginal cost
ΔTC = change in the total cost
ΔQ = change in the production quantity
Visit our Marginal Revenue Calculator to know about the marginal revenue.
To explain the concept thoroughly, we have an example so that marginal cost is more clear and more obvious.
We have an industry that is producing five solar panels for $1500 per day. Now they intend to grow their business to a single unit. They started producing six solar panels, and now the total cost is $1700 per day. What will be the marginal cost?
MC = ΔTC/ ΔQ
Putting the values,
MC = (1600-1500) / (6-5)
MC = 1000 / 1
MC = 1000
So the marginal cost will be $1000
How to use Marginal Cost Calculator?
The steps to use a marginal cost calculator are as follows:
Step 1: Enter the value of total variable costs in the first required input.
Step 2: Enter the value of change in quantity in the second required input.
Step 3: The calculator will automatically display an answer on the screen.
By the use of the calculator, you can get an idea about the cost you need to grow your business plan. Forget the hard calculations and use the marginal cost calculator so that you can get your answer in a few seconds.