Financial Calculators

## Consumer Surplus Calculator (consumer Surplus Formula)

Calculate instantly consumer surplus with our online economic calculator!

\$
\$
\$

## Extended consumer surplus

\$
\$
\$

 ◦What is a consumer surplus? ◦What is the consumer surplus formula? ◦How to calculate consumer surplus? ◦What is extended consumer surplus formula? ◦What is a surplus in economics? ◦What is the law of diminishing marginal utility? ◦What is the difference between consumer surplus and producer surplus?
A consumer surplus is an economic phenomenon where a consumer is willing to pay more than they are expected to pay for a particular product.
You will also learn how to calculate surplus and also learn the formula behind the economic phenomenon.

## What is a consumer surplus?

Consumer surplus is the measure of a customer's excess benefit. It shows how much of a difference the consumer is willing to pay at maximum for a product compared to the actual price they pay.
The concept of consumer surplus is based on the idea of marginal utility, which states that the more a person consumes, the less they are likely to pay for the additional unit.
Consumer surplus explained

## What is the consumer surplus formula?

The equilibrium price is the price at which the demand and supply meet. The area between the supply and demand levels is known as the producer surplus.
The consumer surplus formula::
Consumer surplus = maximum price customer is willing to pay – actual price
Formula of consumer surplus

## How to calculate consumer surplus?

Calculating consumer surplus is fairly simple to do. Here are step-by-step instructions on how to do it:
1. Find the maximum price that the consumer is willing to pay.
2. Find the actual price of the product in the market
3. Deduct actual price from the maximum price and as a result, you will get consumer surplus

## What is extended consumer surplus formula?

On the demand and supply curve, the extended consumer surplus formula is following:
CS = 1/2 x Qd x ΔP
where,
CS = Consumer surplus
Qd = Product quantity at equilibrium
ΔP = Pmax – Pd
Pmax = Maximum price consumer is willing to pay
Pd = the price at equilibrium
Equilibrium is the point where supply and demand are equal.

## What is a surplus in economics?

A surplus is several goods or assets that exceed the portion that's used. It can also refer to an unused product that's sitting on store shelves.
A surplus occurs when the demand for a product exceeds the supply--or if people are willing to pay more than others for it. This usually occurs when the market is not set in stone.

## What is the law of diminishing marginal utility?

The concept of diminishing marginal utility explains how a person's satisfaction with a product or service decreases as they consume more of it.
The law of diminishing marginal utilities states that the utility of a service or good declines as more customers consume it. This concept argues that economic actors are less satisfied with the number of goods that they consume.
Law of diminishing marginal utility

## What is the difference between consumer surplus and producer surplus?

The main difference between consumer surplus and producer surplus is that consumer surplus shows the gap between what consumers are willing to pay for a product and the actual price of the product. And the producer surplus shows the difference between the actual price of the product and the minimum price for which the producer is willing to sell the product.
Article author
John Cruz
John is a PhD student with a passion to mathematics and education. In his freetime John likes to go hiking and bicycling.
###### Consumer Surplus Calculator (consumer Surplus Formula) English
Published: Wed Sep 22 2021
In category Financial calculators

#### Other financial calculators

Monthly Salary To Hourly Salary Calculator (pay Calculator)

Calculate what you earn per hour easily with our calculator! You also learn the important differences between hourly and monthly salary payments!

Pay Raise Calculator

Calculate your new salary after pay raise easily with our online pay raise calculator!

Salary Calculator

The Salary Calculator converts salary amounts into their equivalent values based upon payment frequency.

Car Loan Calculator

This is a free calculator that calculates the monthly loan payment of an auto loan. Works with new and used cars!

Discount Calculator

Using this online calculator, you can figure out the final price after applying any discounts.

Cryptocurrency Profit Calculator

This calculator helps you to see how much money and profit you have made from your investments.

Ethereum (ETH) Profit Calculator

Calculate the profits of your Ethereum investments easily with this free investment calculator.

Dogecoin (DOGE) Profit Calculator

Calculate the profits of your Dogecoin investments easily with this free investment calculator.

Bitcoin (BTC) Profit Calculator

Calculate your investment profits of Bitcoin easily with this free investment calculator.

Return On Equity Calculator

This ROE calculator allows you to quickly calculate ROE (return-on-equity) based upon the net income generated as well as the total equity of the company/project.

Mortgage Calculator

This is a free tool that will calculate your monthly mortgage payment.

Ripple (XRP) Profit Calculator

Calculate the profits of your XRP investments with this free profit calculator.

Bitcoin Cash (BCH) Profit Calculator

Calculate the profits for your BCH investments easily with this free investment calculator.

Litecoin (LTC) Profit Calculator

Calculate the profits of your LTC investments easily with this free investment calculator.

Binance Coin (BNB) Profit Calculator

Calculate the profits of your BNB investments easily with this free investment calculator.

Equivalent Annual Cost Calculator

Use this free online tool to calculate the equivalent annual cost, which is a measure of the true cost of owning an asset over its lifetime.

Annual Income Calculator

This is an online tool is that calculates how much money you make in a year.

Return On Investment (ROI) Calculator

This is a calculator that helps you figure out how much money you will make from an investment.

Car Depreciation Calculator

This calculator calculates the cost of depreciation for your car. Estimate the car's value once it has been used.

Interest Calculator

Our interest calculator allows you to calculate the interest payments and final balances for not only fixed principal amounts but also periodic contributions.

CAPM Calculator

Use this CAPM calculator to explain the relationship between the expected return and the risk of security.

Financial Markup Calculator

The markup calculation calculator is a tool for businesses that calculates your sales price.

Home Loan Calculator (EMI)

This home loan calculator is free and will allow you to calculate your Home Loan EMI quickly.

PPF (Public Provident Fund) Calculator

This financial tool allows you to resolve your queries about the Public Provident Fund account.

Mutual Funds Returns Calculator

With this free tool you can calculate the return on investment on mutual funds!

SIP (systematic Investment Plan) Calculator

SIP calculators allow individuals to quickly calculate the potential returns of their mutual fund  investments made via SIP.

CAGR Calculator (compond Annual Growth Rate)

If you want to estimate the potential return from an investment, the CAGR calculator is the tool for you!

Ponderal Index Calculator

This ponderal Index Calculator will provide a more accurate measurement than Body Mass Index.

Cap Rate Calculator

The cap rate, also known as the capitalization rate calculator is a tool that anyone who is interested in real property can use.

Stock Average Calculator (cost Basis)

This stock average calculator will allow you to calculate the stock price or the average price at which you purchased your stocks.

Investment Calculator

You can use the Investment Calculator to calculate a particular parameter for your investment plan. The tabs indicate the parameter to be calculated. To calculate the return rate required to reach a certain investment goal using particular inputs click on the Return Rate tab.

Reverse Stock Split Calculator

This remarkable tool will calculate a stock's new value after a reverse stock splitting.

Electricity Cost Calculator

The electricity cost calculator allows consumers to estimate their annual electricity costs in an easy-to-use way.

Common Rent Split Calculator

This calculator will quickly and efficiently calculate the fair rental amount for each member of your rental unit.

Commission Calculator

This online calculator will calculate the percentage-based remuneration.

Future Value Calculator

The Future Value Calculator is a smart tool that will quickly calculate the value of any investment at any given moment in the future.

Startup Valuation Calculator

The post and pre-money valuation calculator simplifies the math so you can focus on more important tasks when you're negotiating startup valuation.

Hedge Ratio Calculator For Investments

This calculator will help you determine the percentage of your investment portfolio that has been hedged against investment risk.

Sinking Fund Calculator

The sinking fund calculator helps you to determine how much you need to put aside in order for you to achieve your goal within the specified time.

Recurring Deposit (RD) Calculator

The RD Calculator (recurring deposit) can help you determine the maturity value for your RD Investment Account if it grows at a set interest rate and over a certain amount of time.

Lease Calculator

Our lease calculator will help you to determine the monthly, and total payment for a lease.

Debt To Income Ratio Calculator

The debt to income calculator, or DTI calculator for short, is an invaluable tool for anyone who has taken out any type of loan. This calculator will show you how much debt you have and whether you can afford another loan.

Payback Period Calculator

The payback period calculator allows you to estimate how long it will take to make a profit on an initial investment.

Earnings Per Share (EPS) Calculator

This tool will guide you in calculating your earnings per share. It also provides you with an exact formula for calculating your EPS.

Moment Of Inertia Calculator

The moment-of-inertia calculator can be used to assist you if you are having trouble determining the second instant of area for any common shape (such as a round or a hexagon).

Future Value Of Annuity Calculator

The Future Value of Annuity Calculator can be used to find the future value of a set of equal cash flows at a particular date.

Annual Percentage Yield

The APY Calculator can be used to calculate how much interest you will earn on an investment made over the course of a year.

Margin Calculator

If you're looking to maximize your margins, this calculator will be your best friend. You can calculate the revenue from an item if you know its price and your preferred profit margin percentage.

Crore To Lakh Converter

The crore to lakh converter is a handy tool that allows you to convert any number into crores or lakhs.

Boat Loan Calculator

This tool will assist you in estimating monthly payments as well as calculating the total price for your dream boat financing.

Bond Price Calculator

We aim to help you calculate the bond prices issued by a government or a corporation with this bond price calculator.

Time And A Half Calculator

With our time and a half calculator, you can easily find the overtime rates for time and a half, double pay, and triple pay.

FIRE Calculator - Calculate Early Retirement

FIRE Calculator — Financial Independence, Retire Early

Percent Yield Calculator

The percent-yield calculator will assist you in understanding how percent yield and also show you the percentage yield formula, as well as the definition.

Diversification Calculator

Credit Card Payment Calculator

Calculate your credit card payments easily with our free tool

Calculate Your Current Ratio Of Assets To Liabilities

Credit Score Calculator

Try our free and easy to use credit score calculator. Use it to estimate what your FICO credit score might be.

Dividend Payout Ratio Calculator

Common Equity Tier 1 (CET1)

Cost Of Living Calculator To Understand Your Monthly Budget!

Figure out if you will save or owe money each month with our monthly budget calculator

Calculate How Much Capital Gains Tax You Will Owe With This Simple Calculator

Calculate how much capital gains tax you will owe with this simple calculator

Calculate The Coefficient Of Variation

Calculate the coefficient of variation to compare two sets of data with different units of measurement