Finance

Marginal Cost (Change in Total Cost)

Find your marginal cost by dividing the change in total cost by the change in quantity. You also see average total cost at each level and whether you have economies of scale.

How to use
  1. Enter the total cost and quantity at the first production level.
  2. Enter the total cost and quantity at the second level.
  3. Compare the ATC at each level for the scale signal.
Extra units
Marginal cost per unit
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Δ Total cost
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Δ Units
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Avg cost before
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Avg cost after
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Estimates for general information, not financial advice. Confirm figures before making money decisions.
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Common questions

How do you calculate marginal cost?

Divide the change in total cost by the change in quantity produced. If cost rises $200 to make 10 more units, marginal cost is $20 per unit.

Why does marginal cost matter?

It tells you whether making one more unit is still profitable, which guides pricing and production decisions.

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