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Producer Surplus Calculator

Calculate Producer Surplus





Formula

To calculate the Producer Surplus (PS):

PS=(MPM)×QS

Where:

What is Producer Surplus?

Producer Surplus is the amount of extra capital a producer earns from an increase in market price due to an increase in demand. It is the difference between what producers are willing to accept for a good or service versus what they actually receive.

Example Calculation

Let's assume the following values:

Using the formula:

PS=(5030)×100=20×100=2000 dollars

The Producer Surplus is $2000.