Finance

Deadweight Loss Calculator (Harberger Triangle)

Enter the pre-tax quantity, post-tax quantity, and price change to get deadweight loss from the Harberger triangle. It also reports tax revenue and the quantity-drop ratio.

How to use
  1. Enter the pre-tax quantity.
  2. Enter the post-tax quantity.
  3. Enter the price change from the tax.
Estimates for general information, not financial advice. Confirm figures before making money decisions.
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Common questions

What is deadweight loss?

It is the loss of total economic value when a tax or distortion stops trades that would have benefited both buyers and sellers.

What is the Harberger triangle?

It is the triangle on a supply-and-demand graph whose area equals the deadweight loss, found as one half times the change in quantity times the change in price.

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