Compute the marginal propensity to consume.
Please do not make financial decisions based on these results.
What is the MPC Calculator?
Compute the marginal propensity to consume. To use the MPC Calculator, enter change in consumption, change in income; it returns mpc, mps, spending multiplier, and shows them instantly as you type.
Where the MPC Calculator fits
Compute the marginal propensity to consume. The main figure it returns is the MPC, worked out from the values you enter.
It belongs with the other macroeconomics tools. If you are comparing options or checking a result from another angle, try the MPS Calculator, GDP Calculator (Gross Domestic Product) or the GDP Deflator Formula Calculator.
How to use the MPC Calculator
- Fill in the fields. You will need Change in consumption ($), Change in income ($). Use real figures from your own records where you can. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the MPC, and the cards below show MPS, Spending multiplier. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the MPC Calculator using the default values shown in the calculator above:
Inputs
| Change in consumption ($) | 800 |
|---|---|
| Change in income ($) | 1,000 |
Results
| MPC | 0.8 |
|---|---|
| MPS | 0.2 |
| Spending multiplier | 5× |
With these inputs the calculator returns MPC: 0.8. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Change in consumption ($) from 800 to 960 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| MPC | 0.8 | 0.96 | +20% |
| MPS | 0.2 | 0.04 | -80% |
| Spending multiplier | 5× | 25× | +400% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the MPC Calculator reports MPC, mps and spending multiplier. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
How does MPC relate to MPS?
MPC + MPS = 1.
What is the spending multiplier?
It is 1 divided by one minus the marginal propensity to consume, so an MPC of 0.8 gives a multiplier of 5.
Where do the economic inputs come from?
Use official sources such as the BEA, BLS, Federal Reserve, IMF or World Bank for GDP, CPI, unemployment and money supply figures.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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