Marginal Utility Calculator
Calculate marginal utility from total utility values.
Find the point of maximum utility, diminishing returns, and display a complete MU table.
What Is Utility?
In economics, utility measures the satisfaction or benefit a consumer gets from consuming a good or service. It is measured in abstract units called utils.
Total Utility vs. Marginal Utility
- Total Utility (TU): cumulative satisfaction from consuming n units
- Marginal Utility (MU): the additional satisfaction from consuming one more unit
Formula
MU = ΔTU / ΔQ = TU(n) − TU(n−1)
The Law of Diminishing Marginal Utility
As you consume more of a good, each additional unit gives you less additional satisfaction.
Example: Your first slice of pizza is amazing (MU = 10). Your third slice is okay (MU = 4). Your fifth slice might make you feel sick (MU = −2).
Utility Table Example
| Quantity | Total Utility | Marginal Utility |
|---|---|---|
| 0 | 0 | — |
| 1 | 10 | 10 |
| 2 | 18 | 8 |
| 3 | 24 | 6 |
| 4 | 28 | 4 |
| 5 | 30 | 2 |
| 6 | 30 | 0 |
| 7 | 28 | −2 |
Maximum Utility is at Q=5 or Q=6 (where MU = 0 or turns negative). Diminishing returns begin at Q=2 (where MU starts falling from 10).
Consumer Equilibrium
A rational consumer maximizes utility by consuming goods until: MU / Price = equal for all goods
This is the equimarginal principle — spend so that the last dollar spent on each good gives the same marginal utility.
Enter your total utility values (one per quantity level) to get your MU table.