Marginal Cost Calculator

Marginal cost is usually equal to the average cost when the company holds a fairly constant average cost. Use our online marginal cost calculator to calculate it in cost accounting.

Marginal cost is usually equal to the average cost when the company holds a fairly constant average cost. Use our online marginal cost calculator to calculate it in cost accounting.

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Marginal cost(M) Formula: Divide the change in total cost by change in the quantity of output to calculate the marginal cost.

Formula:

Marginal cost (M) = Change in total cost / Change in quantity of output

Marginal cost: It is the rate of change of the total cost of production that arises when the quantity produced is incremented by one unit. It is calculated in the situations when a company meets its breakeven point. It is usually computed to find at which point the company meets its economic growth. It includes labor cost, material cost, estimated portion of the fixed cost.

Use our simple online marginal cost calculator to find the same based on the values of change in total cost and change in the quantity of output. You can select the required currency from the drop-down.

Example:

Calculate Marginal cost for total cost change as $5000 and output quantity change of 250.

Solution:

M = 5000 / 250
= $ 20


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