# Marginal Propensity To Consume (MPC) Calculation(Step by step calculation) # Marginal Propensity To Consume (MPC) Calculator

MPC mentions the increase in consumer spending owing to the increase in disposable income.

Step by step calculation

#### Marginal Propensity to Consume(MPC) Formula 1

MPC = C1 / C2

Where,

MPC is Marginal Propensity to Consume

C1 is Change in Consumer Spending

C2 is Change in Income

Step by step calculation

#### Marginal Propensity to Consume (MPC) Formula 2

Marginal Propensity to Consume (MPC) = ΔC / ΔI

Further, the MPC formula can be derived into

Marginal Propensity to Consume (MPC) = (C1 - C0) / (I1 - I0)

C0 = Initial Consumer Spending

C1 = Final Consumer Spending

I0 = Initial Disposable Income

I1 = Final Disposable Income ## Related Calculator

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